CD investments, or certificates of deposit, are a popular choice for individuals looking for a safe and guaranteed strategy to grow their savings. CDs can be a safe investment with a guaranteed rate of return. Savers should shop around for the best rate and choose a term they're comfortable with. It's a good option if you are looking for a safe investment strategy. It may appeal to you if you're only a few years away from retirement and want to protect your principal while earning a higher interest rate.
Interest rates are up, so now's the time to lock-in a great rate for the long term with the best 5-year CDs on the market. Fidelity CD rates are competitive but change often. Fidelity offers brokered CDs, which differ from standard CDs. Is a Fidelity CD right for you? A CD is a type of savings account with a fixed term. CDs can have higher rates than regular savings accounts.
Second, your 401(k) offers tax-deferred growth. This allows your money to grow faster inside a 401(k) than it would within a taxable account. Brokered CDs are certificates of deposit you purchase through a brokerage firm, rather than directly from a bank. These time-deposit savings vehicles offer competitive rates but may come with additional fees or restrictions.