The new year is always a great time to reset and set some financial savings goals, especially as this coincides with tax season.
Many people consider what to do with their tax return. We talked with Dave Nellis with America First Credit Union about a good saving strategy.
He told us about Certificates of Deposits (CD) which is a safe and guaranteed way for helping your money do more.
Dave explained that a CD is a savings vessel where you agree to leave your money untouched for a set period of time in exchange for higher interest rates. You only need $500 to start.
There are several types of CDs:
- Regular- Fixed interest rate for a fixed period of time (e.g., 6-months, 1-year, 5 years)
- Bump or Step Up- Allows you to increase your rate if interest rates go up during the term of the certificate.
- Flex or Flexible- Lets you add or withdrawal funds on an allowed schedule. Potentially without penalty.
- CD Laddering Strategy: Instead of putting all your money in one CD, you split it into multiple CDs with different maturity dates. This ensures you have regular access to funds while still earning good rates.
- Dedicated Savings or Add On Certificate: Lets you regularly add funds to a CD while maximizing the benefits of a higher rate.
See americafirst.com for all the information on how you can open up endless possibilities of helping your money do more with some great dividend rates.
