education | money myths
myth 3: "CDs are so yesterday"
Citizens Access in partnership with Forbes
You know about CDs, right? Of course you do, you’re financially savvy. (Though, just so we’re clear, we’re talking certificates of deposit here, not those discs from the ‘90s.)
Still, you might ask:
- Wait, aren’t those what my grandparents used?
- Aren’t they really complex to set up?
- Don’t they lock up my money for a long time?
- Won’t I miss out on higher interest rates?
NO, NO, NO and Not Necessarily
OK, so what’s a more accurate take on CDs?
- They’re a powerful savings tool
- They almost always offer much higher rates than savings accounts (customers get a higher return for committing to hold their money for a period of time)
- They can be flexible to suit a variety of goals
And, did you know you can optimize those rates and gain greater flexibility through a strategy called
We happen to know that 39% of you are not aware of CD laddering (Forbes Insights Q3 2018 survey.)
Here's another way to look at it in a single snapshot: