5 Reasons You Should Consider a CD Right Now
Let’s talk CDs — not the music-making kind but the money-making kind.
A CD (certificate of deposit) can be a great low-risk way to build your savings. This is particularly true these days, when your cash may be languishing when it could be growing.
After years of low interest rates, your money isn’t growing much in a traditional savings account or even an interest-bearing checking account. And why put your money in the stock market or other potentially volatile investments when there are more secure options?
It’s time to consider a CD.
Here’s what you should know:
1. CDs are low risk
A CD allows you to earn money on your deposit at a fixed interest rate for a fixed amount of time. Because it is so structured, you know exactly what you will get at the end of the investment. Plus, they are FDIC insured. That provides an added layer of protection. Who doesn’t want a little safety and dependability these days?
2. Rates can be favorable
Banks generally provide a better interest rate on a CD than on a savings account. This is uniquely important right now as rates for many traditional savings accounts or interest-bearing checking accounts are quite low due to years of a low-interest rate environment.
3. CDs put your money to work
If you have extra cash that you do not need immediately, CDs can grow your nest egg. If you leave your money in a traditional savings account, it isn’t doing much of anything except sitting there. In fact, you could argue it is losing value in the race against inflation. Or you could put it into a CD with more attractive rates (more on that later).
4. CDs are easy
So, you know you want to buy a car a year from now or remodel a few years from now. Just set it and forget it with a CD. They are easy to open and require no action until the end of their term.
5. Opportunity is calling
Umpqua is already jumping ahead of the crowd with great rates on CDs. We are offering a 3.75% annual percentage yield on a 13-month CD. Find out more about the terms and restrictions below.