What’s better, putting your money on a Certificate of Deposit or leaving it on your savings account?
The short answer is: if you are not going to need the money right away, invest on a CD.
Now the longer answer…
The bank pays you a interest for leaving the money on your savings account. That gives you quick acces to your cash and you get low a interest in return for leaving it there.
But leaving your money on a savings account for long periods of time is just not good.
Due to inflation you are losing the value of your savings every year if you dont do anything with them.
Plus, you are leaving money on the table that you could earn by investing more with your savings.
They do give you an interest, but it’s usually lower than CDs.
The interest that you get on a certificate deposit can sometimes be twice as the one on a savings account.
Of course, investment on a CD means that you will Not be able to access your money for the term that you agreed on (at least not without a penalty).
So, if you have more money that you are going to need on the short term and you are interested in obtaining better interest rate, then doing a CD may be more beneficial for you.