Are Certificate of Deposits a Good Investment?

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A certificate of deposit, or CD, is a good investment if the investor is looking for a secure, stable investment without a whole lot of risk. Consider investing in the securities market or corporate bonds for a riskier investment than a CD with tips from an investment portfolio manager in this free video on investing and personal finance.

Part of the Video Series: Investing & Retirement Funds
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Video Transcript

Ok so are certificate of deposits good investments. Yes if you are looking for something that is stable and secure not subject to a great amount of risk a certificate of deposit is a good investment. If you are looking for something that's going to give you substantial upside potential and you are willing to take some risk then a CD would probably not be the right way to go. Then you would be looking more towards the securities market but if you are looking for something that's secure and has really very little risk maybe guaranteed by the bank or some collateral that is supporting the CD then that's a very good investment. If you are looking for something similar to the CD you might actually look at a bond whether they be government or municipal bonds or just corporate bonds those would give you the same type of arrangements where they'll pay you in trust. Again bonds won't have the same type of guarantee or security of a CD but they will provide you the same type of income and it might be something to investigate before actually going in and just buying the CD without doing some research first.

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