One of the most helpful financial advice financial gurus love to throw at you is that you should multiply your sources of income. That is true; one should never rely on a single source of income. However, what many gurus fail to suggest is how exactly you can do it. A simple answer, of course, is to invest your money. Yet, for many of the readers, investment may sound risky. That is where the concept of CD comes in.
To be precise and simple, a certificate of deposit is one of the most risk-free investment options offered by banks and financial institutes. It is among the safest investment options for people, who wouldn’t like to risk their finances with stocks. Through certificate of deposit yield less profits, they are almost completely free of the risk factor. Still, a calculator is extremely important to find out whether the interest rate is enough to return a decent amount of profit during the term.
On the other hand, Certificate of Deposit yields higher returns as compared to savings accounts. The only difference is, CDs have a maturity date, which means you cannot withdraw your amount before that specific time.
A calculator might help you analyze your profits and return on investment. For a thoughtful decision, however, you will require preliminary understanding of pros and cons as well. Like any other investment option, CD has its own set of advantages and disadvantage. This is something a calculator can not elaborate on. So, that is why we decided to share some of the major ones with you.
A calculator will help you decide whether CD is really a suitable option for you or not. Since the rate of return is lower, it is important to calculate annual percentage yield and compound accumulated interest amount before jumping on a decision. Our simple to use calculators can help you find it all out in just a few minutes.