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Flexible term lengths. CD terms can range from three ... you can invest your retirement savings in a CD account while enjoying the tax benefits and potential higher returns associated with a ...
If you choose a savings account over a no-penalty CD, you may face these drawbacks: Variable interest rates. Unlike the fixed-term rates offered by no-penalty CDs, savings account rates can fluctuate.
And you can't lose money in a CD the way you might lose cash in the stock market -- open a CD with an FDIC-insured bank, and up to $250,000 of your cash ($500,000 for joint accounts) is protected ...
Why some people like CDs for retirement It's common to use an IRA or 401(k) to save for retirement. And while you could keep your IRA or 401(k) in cash, people with these accounts generally invest ...
Choose your CD term. Select a timeline matching your financial goals. A 3-month CD works well for short-term savings like a down payment, while a 2-year CD maximizes your rate for longer-term growth.
Unlike a traditional savings account that allows for flexible movement of your money without penalty, a CD requires you to lock in your deposit over a specified period of time, returning your ...
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