AAA Certificates of Deposit

What’s your investment strategy? Growth? Income? Asset preservation? Any investment strategy should start with a goal—for instance, saving for retirement or funding a child’s education. Your choice of investments to reach this goal will depend upon your time horizon as well as your appetite for risk.

For most people, their appetite for risk decreases with their investment time frame. In other words, the closer you are to your goal, the more you’ll want to reduce risk in your portfolio. And that’s where AAA Certificates of Deposit (CDs) offered through Discover Bank come in, whether those goals are months or years away.

AAA CDs offer a combination of access, liquidity, safety and growth potential that make them an ideal choice for those looking to reduce risk in their portfolios. With flexible terms and great guaranteed rates, AAA CDs help provide the peace of mind that can be impossible to achieve when your savings are rising and falling in step with potentially volatile investment markets.

You can purchase CDs in a variety of maturities (the AAA Deposit Program offers terms ranging from three months to ten years) making it easy to access funds when you need them. Keep in mind, however, that there is a penalty for early withdrawal, so you’ll want to plan your timing to match your specific needs.

CDs offer a greater variety of short-term investment horizons, making them an excellent choice for anyone seeking both security and liquidity.

CDs can be an ideal foil to the volatility of higher-risk assets such as stocks. Prices of bonds and bond mutual funds can also vary considerably since they react to changes in market interest rates. With a CD, however, you can lock in a rate and not worry about losing your principal. The savings you hold in AAA CDs are always FDIC insured up to the maximum allowed by law.

If you need a dependable return on your money but don’t need your money for some time, CDs can be an excellent investment choice. You can also make your savings work harder for you: open multiple CDs with different maturity dates. It’s called “CD laddering,” and it’s a great way to take advantage of the best CD rates for longer terms and ensure you have liquidity and flexibility when you need it.

So, whether you’re investing for the short-term or looking to lower risk in a longer-term portfolio as you approach your goal, consider including CDs as part of your investment strategy. Plus, AAA members receive preferred member rates on 12-, 24- and 60-month CD and IRA CD terms. Open an account online in minutes at AAA.com/Deposits, or call Customer Service 24 hours a day at 888-728-3230.

Deposit Accounts offered through Discover Bank, Member FDIC. The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.