With interest rates so low these days, it’s no surprise that many people are beginning to take a closer look at CDs. A certificate of deposit (CD) is a low-risk investment option that essentially allows you to deposit a certain amount of money with a bank for a fixed period of time in exchange for slightly higher interest rates than regular savings accounts. So what are some of the positive benefits of investing in CDs?

The first benefit of investing in CDs is that they are relatively low risk. Since the money is put into an insured bank account, the principal amount is protected and guaranteed as long as the deposit institution is FDIC-insured. This also means that the returns are generally lower than other investment options with potentially greater returns, however the risk of loss is significantly reduced.

Second, CDs are a great way to lock in current rates of return for a fixed period of time. This makes it easier to plan your finances and budget depending on how long you want to save for. This could be especially beneficial for those who are looking to plan for retirement or another long-term savings goal.

Third, CDs can provide an alternate source of passive income. The returns may not be as generous as stock