How to Manage Investment CDs
Investing in a certificate of deposit (CD) is one way to save for the future. Less risky than other types of investments, CDs tend to earn a lower interest rate but are safer and usually FDIC insured through most financial institutions, such as banks and brokerage firms. Manage investment CDs and earn.
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Instructions
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Realize CDs sold by banks, brokerage firms and thrifts are debt instruments used to raise capital for business. Market interest rates are locked in when CDs are purchased and there's no limit on CD denominations.
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Obtain CDs from banks for terms based on months. Know that the longer you invest, the more you'll earn on your investment. Talk to your personal banker or loan officer to manage investment CDs. Attach or relate CDs to other accounts for convenient online banking.
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Invest in CDs through a brokerage company, such as Fidelity Investments and earn top interest rates on 12, six or three month CD. Buy a brokerage CD and typically avoid fees. CDs come from various sources and they're usually FDIC insured. Open an account with a brokerage firm to manage investment CDs.
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Note advantages of buying brokerage CDs over bank CDs. Trade brokerage CDs on the secondary market and see they're more liquid. Transfer brokerage CDs easily between brokerage firms to consolidate assets.
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Tips & Warnings
Make sure you're investing with an established and reputable bank, credit union, brokerage firm or other legitimate financial institution before you hand over money. Check FDIC status and contact state agencies governing banking if you have questions about an institution.
