CD interest rates are some of the most attractive investment products available today. They offer a guaranteed rate of return over a fixed period of time, and are considered one of the safest investments available. In today’s uncertain economic climate, investors have been turning to CD’s as an attractive and secure option for their portfolios.

CD interest rates are typically higher than those of savings accounts and money market accounts. This higher rate of return compensates investors for not having immediate access to their money. Investing larger sums for longer terms yields even higher returns. CDs require a minimum deposit as well as a commitment to leave the money in the account for a particular period of time, usually from 3 to 5 years. CDs with longer maturities typically offer higher yields than those with shorter maturities. Interest from CDs can be cumulative or non-cumulative, a distinction that should be considered when evaluating interest rate offers.

CDs provide an added degree of security because the principal is guaranteed by the issuing institution. There are FDIC limits to the amount of protection on certain CDs. Investors should familiarize themselves with FDIC limits and CD rules prior to making a deposit. Some CDs are also FDIC-insured up to $250,000 per account. Additionally, CDs are exempt from state and federal taxes, possibly making CD interest rates an even more attractive option for the secure investor.

CD interest rates have some notable advantages over other investment products. They provide a solid return on investment, guaranteed by a bank or financial institution. They also offer peace of mind and are immune from stock market fluctuations. Although there are early withdrawal penalties and other fees associated with CDs, they are still one of the safest and most attractive forms of investment today.