CD Accounts – A Safe and Secure Investment
Investing personal wealth to earn a substantial return isn't a simple trick. There is a lot of important information to research and understand the different options available, as well as the risks and benefits associated with each. Stocks and CD accounts are two popular investment types with very different approaches toward earning returns. While stocks are popular, Waldo State Bank would like to point out the reasons CDs are a safer, more beneficial choice for investing your money.
CDs are a more structured, reliable way to earn on an investment. While a stock's value will fluctuate up and down, sometimes at dangerous ends of the spectrum, a CD account retains a constant value and outperforms against stock investments during economic recessions. CDs also pay interest on a set schedule and provide the principal back when the account matures, assuming no early withdrawals are made.
Another great benefit of CD accounts is that they are safer due to their insurance. FDIC (Federal Deposit Insurance Corp.) insurance is a major benefit that provides additional safety for depositors that can’t afford the ups and downs of the stock market. Stocks are not covered under FDIC as they do not qualify as financial deposits. FDIC insurance protects CD accounts up to $250,000.
It is important to note that investors are not limited to choosing strictly between their investment options. Waldo State Bank’s financial experts highly suggest a diverse portfolio of investment choices. While stocks are more of a gamble and carry the risk of fluctuation or plummeting, choosing wise stock investments to add to the stability of a CD account allows for more opportunity for large gains with a bed of financial security.
Investing money is a serious endeavor that takes conscious effort and attention. Waldo State Bank is here to help our customers choose wisely, setup stable investments, and diversify their opportunities for maximum potential. Stop in and learn about our current CD account interest rates and establish your foundation for financial success today!