Safe

• CDs are FDIC insured, which means that if the bank holding your CD goes under, your money is safe.
  
  

Easy

• You can open a CD at your bank or credit union within minutes, often with as little as $500. Once you open a CD, your work is done, and you can leave it to grow on its own.
  
  

Flexibility

• CDs are much more liquid than other methods of investing. Since they require such a small upfront amount, you can open a number of CDs with different term limits (six months, one year) to ensure that you always have money readily available. You can also use a short-term CD to save money for future large purchases like a down payment on a house or a new car.
  
  

Return

• The return rate on a CD, while still much lower than other investing methods, is typically much higher than a savings account.
  
  

Selection

• CDs come in a number of terms, from six months to seven or 10 years and can be fixed or variable rate. With some CDs, like Expandable CDs, you may be able to continue to add money.
  
  

Considerations

• Make sure to ask your lender about any penalty fees, call features and potential rate changes prior to opening a CD.