Should You Invest in CDs? What to Consider

Before putting your money in a certificate of deposit (CD), you should know why banks issue them, how they are used and how they are priced.

The words certificate of deposit written across a sheet of paper alongside a calculator.
(Image credit: Getty Images)

In an economic climate marked by rising interest rates, there is a renewed interest in certificates of deposit (CDs). But with trust in banks dwindling and convoluted reserve requirements, the question persists: Should you invest in CDs?

Like most things, it depends on your needs and goals, but most of all, it is important to understand the product you’re placing your money into before choosing to deposit money into a CD. I understand that a bank CD may seem as basic as the ABC’s, but I find that many people have little knowledge about why banks issue them, how they are used and how they are priced.

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Brian Skrobonja, Chartered Financial Consultant (ChFC®)
Founder & President, Skrobonja Financial Group LLC and Skrobonja Wealth Management, LLC

Brian Skrobonja is a Chartered Financial Consultant (ChFC®) and Certified Private Wealth Advisor (CPWA®), as well as an author, blogger, podcaster and speaker. He is the founder and president of a St. Louis, Mo.-based wealth management firm. His goal is to help his audience discover the root of their beliefs about money and challenge them to think differently to reach their goals. Brian is the author of three books, and his Common Sense podcast was named one of the Top 10 podcasts by Forbes. In 2017, 2019, 2020, 2021 and 2022, Brian was awarded Best Wealth Manager. In 2021, he received Best in Business and the Future 50 in 2018 from St. Louis Small Business.