Certificate of Deposit
Certificate of Deposits offer a very low risk investment for people who save over a longer period of time. You can open a CD with almost any amount of money, and the longer you keep your money in the CD, the higher your interest rate will be. You select your savings term when opening the account.
Certificate of Deposits are considered a good option for retirement since they are a safe investment. Individuals who are conservative with their money and do not wish to take a chance using higher-risk investments appreciate CDs for their predictable earnings. In particular, people who are approaching retirement age need to be more conservative with their money than someone who is in their 20’s. It makes sense to use Certificate of Deposits to hang on to the money they’ve already invested throughout the years.