Are CDs Worth It?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Are CDs Worth It?

Certificates of Deposit (CDs) can be a worthwhile investment for those seeking a low-risk option with fixed interest rates. However, their value depends on individual financial goals and market conditions.

Are Certificates Of Deposit (Cds) Worth It

Advantages of CDs

  1. Guaranteed Return: CDs offer fixed interest rates, ensuring a predictable return.
  2. FDIC Insured: Up to $250,000 per depositor, per insured bank, for each account ownership category.
  3. Diverse Terms: Ranging from a few months to several years, allowing flexibility.

Disadvantages of CDs

  1. Lower Yield: Often lower than other investment types.
  2. Inflation Risk: Fixed rates might not keep up with inflation.
  3. Liquidity Issues: Early withdrawal penalties can apply.

Comparison with Other Safe Investments

  1. High-Yield Savings Accounts:
  2. Money Market Accounts:
  3. Multi-Year Guarantee Annuities (MYGAs):

Jon Stewart Weighs In


Whether CDs are a good investment largely depends on your financial goals, risk tolerance, and the current interest rate environment. Compared to high-yield savings accounts and money market accounts, CDs usually offer higher, fixed returns but with less liquidity. MYGAs may offer higher returns and tax benefits but come with their own set of limitations. Evaluating these options against your personal financial strategy is crucial. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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