A CD, or a certificate of deposit, can provide Romulus residents with a different way to invest and plan out their financial futures. When you open a CD, you put a sum of your money into a long-term savings account with a credit union or bank with a fixed rate and no monthly payments so your money can gain interest over time. A CD usually offers significantly higher interest rates than a savings account, but those benefits also come with a drawback: you're often unable to make early withdrawals from a CD without suffering a penalty.

How Can a Certificate of Deposit Help?

A certificate of deposit can be a great option if you’re looking to set aside a larger sum of money that can mature over time in order to prepare for big purchases or investments around Redford -- like a new home and car. Certificates of deposit have term limits that can last several months to a few years where your money will be invested. Once your term is up, you can either choose to roll in into a new CD, or cash out.

No matter how long the term is or whether you have a CD with a bank or credit union, certificates of deposits are insured by the federal government, so you can rest assured that your money is protected. THere are many options when opening a CD, but the two most of our members are concerned with are the interest rate and the duration of the CD.

Should I Put My Money in a CD?

Everyone is different, but there are a few signs that investing in a CD is the right thing to do with your money:

If you’re an individual who can handle the longer-term period of a CD, as opposed to the quick turnaround some might initially expect from other options like stocks and bonds, this can be the right choice for you.
If you need regular access to liquid funds, a CD might not be right for you -- on the other hand, if you have money that's been sitting in a savings account untouched, it could be doing more work for you in a CD.

Learn About CDs and More at Public Service Credit Union

As you can see, a certificate of deposit can provide you with the option to let your money grow on its own terms and provide a sound investment for the future. If you’re ready to get started on a CD today, Public Service Credit Union is proud to offer Detroit-area customers a wide range of long-term banking solutions and resources to meet their financial needs. Become a member of our credit union today where you can learn about our CD rates, and take advantage of our many reliable credit resources. Contact us today for more information and to get started!

Is a CD Right for You?

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