The last economic recession has left a mark on people’s mind. Even smart investors are now skeptical to invest in stocks, bonds and even mutual funds because of heart breaking experience during the economic depression. So they went back to traditional and safest way to invest their money: CD or Certificate of Deposit. Investors used to ignore this because their money is not earning that much and there’s no thrill and frill, high and low that they could focus upon. Instead their money is safely parked inside the bank. But the question now is, why do a lot of people opt for this than anything else? Well, we can easily assume that smart investors are just being smart. Most of them just look around for high paying CD rates and invest lots and lots of money on them to earn big.
This is the easiest and the most profound way to invest especially for beginners. There is no risk of loss, you can earn competitive rates and they take none of your time. You just simply let your money earn for you. And there is very low to no risk involved because your money will be insured by the government. But you have to look for FDIC banks because these banks are Federal government insured.
To earn more money, you might want to consider looking for banks that pay high CD interest rates to maximize your money’s value. You can compare rates from one bank to another, sometimes you have to talk to the manager and give them an idea about just how much you’re willing to invest. They could give in to your asking rate as long as you promise them to not withdraw your money for a long time frame.