Do you know that a certificate of deposit (CD) have many benefits for you? Whether you want to save money or invest your money, a CD is a great option. In an easy way, a CD place your money with the payment of a higher and fixed interest rate, in a convenient period that can be from one month to five years.
Most of the time, the financial institutions request an initial deposit of $1,000 and the benefits you will get are many. Here you will find some of the more important ones:
- They are easy to request and obtain. In a matter of minutes, you can have a CD in a bank.
- You can open a CD with a relatively low amount of money. There are institutions that allow you to do it with $1,000.
- You choose and establish from the first day the period or term that suits you to keep it.
- It helps you create a savings discipline for your financial life that will help you establish a favorable behavior to meet your economic goals.
- The risk level are conservatives and interests are credited and computed each month.
- It’s a great tool for savings, because it has an expiration date that you can base on your priorities.
- It becomes part of your financial history for loan applications or bank management in the future.
- You can design your future financial life and you will not need to focus only on current savings.
- Following this line, you can predict the income that you will have as a result of obtaining a CD. This in turn gives you the opportunity to visualize future incomes.
- They are FDIC- insured up to $250,000.
These are some of the benefits you will receive from a CD. Based on your situation, this could be an alternative to successfully grow your financial life.
For more information about CD or if you are ready to obtain a CD, you may contact us at 787.777.7777.
Oriental Bank is a subsidiary of OFG Bancorp. Member FDIC
Author Sandra Cabanillas is product manager at Oriental.