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Advantage of Certificate of Deposit

Are you considering a certificate of deposit (CD)? A CD is a typically reliable deposit product but it’s still worthwhile to understand the advantages and disadvantages before you move your money.

This article details some of the characteristics of a certificate of deposit and other factors to consider so you can make the right decision.

What Advantages Does a CD Offer?

Certificate of deposit

If you’re interested in saving money and earning interest, a certificate of deposit could be right for you. Here are some advantages of having a CD:

The certificate of deposit rates offered by Synchrony Bank have been recognized by BankRate.com, MONEY Magazine, Kiplinger and GoBankingRates.com as some of the best in the industry.

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The Downside of a CD: Early Withdrawal Penalties

While a typical certificate of deposit would yield a higher return than traditional savings accounts, you should be aware of the downside of a CD.

CDs are best utilized when the money remains untouched until maturity. There are penalties and fees should you withdraw your money before the end of the term. In short, you get the most for your money when you stay with the CD until it matures.

Saving Smart With Synchrony Bank

Our team of banking representatives at Synchrony Bank has been recognized for excellent customer service and for making banking easy for our customers. We have won awards for product safety, great rates+ and innovative technology offerings.

We also offer 24/7 online banking from your computer, tablet, or smartphone so you can bank on your terms.

Call us at 1-844-345-5789 or use our online CD calculator to get started today.

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Sources:

The Simple Dollar: www.thesimpledollar.com/certificate-of-deposit/

CNN Money: http://money.cnn.com/2013/10/01/pf/savings-account-yields/

+ National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. High Yield Savings Rates: Average APYs are based on High Yield Savings Accounts of $10,000. Money Market Account Rates: Average APYs are based on Money Market Accounts of $10,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed.


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