what's the point of getting a CD

[Mr. Manhattan]

If I put down 10,000 in a bank in 4 years the interest will raise it to 11,000

4 years for 1000

Help me understand this CD thing brehs
it's always one of the top answers I get for how to invest my money

 

[13473]

low-risk investment

 

[Arcavian]

Low risk, low reward

They are STILL better than a basic savings account though.

 

[Larry Lambo]

Guaranteed return.

You want some money to be locked in, while other portions are in riskier investments.

 

[Red11]

Tell me of a GOVERNMENT BACKED, guaranteed other way of earning interest in 6 months to 5 years.

 

[NeilCartwright]

To be honest I wouldn’t even bother with a CD. It’s not worth it

You’d be better off putting that money in an ETF or in a savings account. At least in a savings account you can take it out when you need it

 

[MJ Truth]

Only advantage I can see is for people who know they will spend the money they got if they leave it in a savings account, so it would be protection against themselves.