What is a Certificate of Deposit (CD)?
A certificate of deposit (CD) is a type of savings product offered by commercial banks and credit unions that provides a higher interest rate associated with regular savings deposit accounts and in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.
The CDs are insured “money in the bank” and thus, virtually risk-free. CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks and by the National Credit Union Administration (NCUA) for credit unions.
What is an RMG – Bond Certificate?
A Bond Certificate of deposit (BCD) is a type of alternative investment savings product offered by R.M.G Capital Group that provides a high coupon rate and in exchange for the customer agreeing to leave a deposit in an escrow account untouched for a predetermined period of time, with an option to exit every 30 banking days after the first 60 banking days.
The Bond Certificate is insured “money in the escrow account” and thus, virtually risk-free. the Bond Certificates of deposit are insured by the A-rated and above Insurance/Re-insurance companies.
The Benefits and Disadvantages of investing in CD or BCD
Unlike most other investments, certificates of deposit or bond certificates of deposit offer fixed, safe, and generally insured, interest/coupon rates that can often be higher than the rates paid by normal saving deposit accounts. And CD/BCD rates are generally higher if you’re willing to sock your money away for longer periods.
CDs and BCDs have become a more attractive option for savers who want to earn more than most savings, checking, or money market accounts pay, but without taking on the risk or volatility of the market.