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What is a CD and Why are they so Popular?

Definition of a Certificate of Deposit and why it might be valuable to you



CDs have become the hot, new craze of the past year, but what exactly is a CD? A CD is short for a certificate of deposit. Essentially, this is an agreement between the bank and you. If you wait until the end of the agreement, you will get your full deposit back plus the interest on it. These agreements have a variety of ranges, from as short as 3 months to 20 years!


Here are some key benefits of investing in Certificates of Deposit:


Fixed Returns

Interest rate is fixed for the entire duration of the deposit. If you wait until the end of the agreement, you will get your full deposit back plus the interest on it.


Low Risk

CDs are considered a very low-risk investment because of the guaranteed interest that is attached to the agreement, as well as having FDIC insurance on them up to $250,000.


Flexible Terms

You can choose the duration of your CD based on your financial goals and needs. These agreements have a variety of ranges, from as short as 3 months to 20 years!


Higher Interest Rates

Offers higher interest rates than most savings and checking accounts to grow your money at a faster pace. The interest the bank gives you is calculated yearly and can be paid to you monthly, quarterly, semiannually, or yearly.


CDs can be a very integral part of a person’s financial plan by creating fixed income and protection of principle. Adding these 2 aspects to your financial plan could be a huge benefit today, or years down the road. If you would like to learn more about how we can integrate CDs into your unique financial future, give us a call.



The Gasaway Team


7110 Stadium Drive

Kalamazoo, MI 49009

(269) 324-0080

FAX (269) 324-3834



This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations.


Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results.


Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807.



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