Cds and savings

Savings is important for every individual and family life. Without savings the life is very miserable. Savings are the backup money for emergency expenses like illness, studies, etc. Saving from childhood is the good habit. The small amount of saving is generally used for school fees, educational trips and for projects. The advantage of savings account is we take the money whenever we want. Savings are many types, i.e., post office savings, bank savings, fixed deposits, investments etc. The cd is the one of the investment. Cd means certificates of deposit. This is commonly called term deposit. These deposits are different periods like 3 months, 1 year, 2 years etc. Interest for these deposit are different according to the investment and the period. The cdrates are lesser for short term deposits than long term deposits. The maturity amount of the deposits will be taken after the maturity period only. The depositor cannot take the money or add the money before the maturity period. Usually the certificates of deposit interest rates are higher than the Savings Account. The term of deposit is different from three months to 10 years and more. The main reason for purchase of cd is the money is safe and returned after the specified period.