| Hi Chen!
I just opened a CD for myself this month. 🎉
Why?
Since interest rates have been slowly dropping, I want to lock in higher rates right now.
A CD, or certificate of deposit, is similar to a high-yield savings account.
You can treat it just like a savings account and put money inside.
You get 300-500x more free passive money since interest rates are much higher.
And this is so much better than leaving your money in a regular savings account that usually only gives 0.01% 🤢
The difference between a CD and a HYSA is that though you can lock in higher rates with a CD, you have to keep your money inside for a certain amount of time.
Sometimes it can be 6 months or 12 months.
But this is a great idea if you have money that you want to grow and don’t need for the next couple of months.
CDs are perfect for people saving for a vacation, car, or down payment for a home.
I currently have some of my money split in a HYSA and CD, so I can diversify.
[Here are my favorite CDs!]
Don’t miss out because once interest rates drop, you won’t be able to lock in that rate for your CD!
Have a great day!
Steve | Financial Freedom Coach
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