Is a CD the option for you?
The following advertorial was written by Sandra Cabanillas, product manager at Oriental.
If you are looking to grow your money in a certain period, a certificate of deposit (CD) may be your option. A CD is a special type of savings account offered by banks or credit unions. According to the Consumer Financial Protection Bureau (CFPB) a CD is also called “term deposit”. In an easy way, a CD place your money with the payment of a higher and fixed interest rate, in a convenient period that can be from one month to five years. Most of the time, the financial institutions request an initial deposit of $1,000.
In what way can you use it?
People interested in a CD can use it as a source of savings for long-term education, part of retirement funds after work and even for the vacations they have always dreamed of.
Does it have additional benefits?
Yes! In almost every case, the risk level of a CD is conservative, and interests are accredited and calculated each month. They are FDIC- insured up to $250,000. Also, a CD helps you create a savings discipline for your financial life that will help you establish a favorable behavior to meet your economic goals.
What other options do I have?
Among the principal alternatives are also the traditional saving account and the money market. In the first instance, you can opt for a regular savings account in which you can keep a certain amount of money to use in the short term or to separate from the rest of your accounts. For example, you could have the account as an emergency fund or for a vacation. On the other hand, with the money market you cannot withdraw your money or make payments more than six times a month from a money market account, either by checks, debit card, money order or electronic transfer.
What is your best option? Is a CD the option for you?
Take into consideration your needs and priorities before making any decision. Determine your plan and act with information and moderation.
For more information about CD or if you are ready to obtain a CD, you could contact us at 787.777.7777.
Oriental Bank is a subsidiary of OFG Bancorp. Member FDIC
This special advertising feature is sponsored and did not involve the reporting or editing staff of Caribbean Business.