Certificates of Deposit
Sometimes you need to set aside some money for a specific time period. Maybe it’s a quarterly tax payment or maybe a balloon note payment. There can be a lot of different reasons. But two things are constant: you don’t want the funds to be at risk and you want to earn a high rate of interest.
Certificates of Deposit are a great tool for this type situation. CDs are a secure investment with flexible time commitments with competitive rates. You begin earning simple interest from the first business day of deposit. That interest may be drawn down before maturity without penalty. As with all banking deposits, The FDIC insures these funds. To see how much you could insure, contact your local branch.
There is a penalty for early withdrawal.