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What is the MAIN advantage of depositing money in a certificate of deposit (CD)?

What is the MAIN advantage of depositing money in a certificate of deposit (CD)?-example-1

2 Answers

5 votes

Answer:

Option D

Step-by-step explanation:

Certificate of deposits (CDs) is a deposit account with set terms and conditions and usually runs for a period of few months to 10 years at max.

CDs are a safe choice of investment with FDIC as a financial institution. Even if a CD fails, money of the depositor is safe. Their interest rates are nominal however they assure different maturity rates and periods. They also ensures that the fees or charges are extremely low.

Hence, option D is correct

User PsychoFish
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6.4k points
7 votes

Answer:

The right answer is : CDs earn a higher interest rate than other saving accounts.

Step-by-step explanation:

User Blorgbeard
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5.2k points