Up your rate of return with a CD.
What is a CD?
A Certificate of Deposit (CD) is an agreement with a bank or savings and loan, for money that gets deposited for a set amount of time. CDs generally offer competitive rates of return (compared to savings accounts, for example) and are FDIC insured.1 Maturities range from 30 days to several years, with CDs offered through Northwestern Mutual usually starting at three-month maturities.
How can CDs fit into your plan?
Northwestern Mutual offers several CD options including interest bearing fixed,2 interest bearing variable, inflation-indexed, and Zero Coupon,2 so you can find the one that works with your financial plan. Keep in mind, CDs are interest rate-sensitive, they don't come without risk (credit, liquidity, and call risks, for example) and you could lose money if you do not hold them until maturity.
Who are CDs for?
Anyone looking for a competitive rate of return on money deposited for a set period of time. As an investor, if you're looking to preserve principal and income, brokered CDs can serve as a sound foundation to your portfolio.