Certificates of Deposit in Phoenix, AZ
Invest Your Savings Safely With a CD
Certificates of Deposit (CDs) are a lesser-known way to invest your money. Sun Cities Financial Group can help you invest in a certificate of deposit. Between our industry expertise and genuine passion to show you the incredible potential of investing, you’ll be in good hands when deciding on the future of your savings.
How Does a Certificate of Deposit Work?
What is a certificate of deposit, and how does it work? Certificates of deposit set a lump sum of savings into an account with a fixed interest rate that accrues money over time. With a CD, you’ll have to wait until its maturity date before you can take out the money – typically one to five years. Brokered CDs offer some flexibility, but they require that you sell the certificate of deposit if you choose to extract from it prematurely.
CDs vs. Savings Accounts
A savings account is a standard way to save your money. By opening an account with a bank or credit company, you can earn periodic interest while taking out money as you please. Certificates of deposit don’t offer that type of flexibility.
Ultimately, savings accounts are ideal if you want a safe place to store your money and earn a little interest on the side. CDs are the better option for serious investors looking to earn a high return on investment (ROI). Certificate of deposit rates run much higher than regular savings accounts, meaning you can earn much more passive income. However, the caveat is that you can’t touch it for a select number of years.
How Much Interest Can You Get From a CD?
While deposit amounts and term rates also make a difference in your final CD payout, interest rates far outweigh them both. Because certificates of deposit work off of fixed interest rates, you can only earn as much as the rate that was set when you established it. Also known as annual percentage yields (APYs), they are the biggest factor in determining how much money you’ll get from your certificate of deposit. With a fluctuating market, there’s no one-size-fits-all interest rate for CDs. You’ll have to consult a financial specialist like Sun Cities Financial Group to determine what’s possible.
Is There Risk Involved With Opening a CD?
Because CDs are backed by the Federal Deposit Insurance Corporation (FDIC), they’re one of the safest ways you can invest your money. Even if a bank fails, the government will protect your money so you won’t risk losing it.
What if You Need the Money Sooner?
Typically, you can’t withdraw money from a standard bank-issued CD. However, there are exceptions. With a certificate of deposit secured loan, you can put your entire CD up for collateral in order to borrow a certain amount. While useful if you need the money immediately and great for its low interest rates, the long and inflexible loan terms become risky if you can’t keep up.
Start a CD With Sun Cities Financial Group Today
For more than 20 years, Sun Cities Financial Group has been helping the residents of Phoenix grow their savings and live a financially free lifestyle. With an A+ accreditation from the Better Business Bureau (BBB), we take pride in committing to each client to help them earn as much as possible. To learn more, call us today.