Certificates are a great way to earn a higher interest rate on money you don’t plan on using right away.
IDEA: Some people use their tax return to build up a savings account. When you receive your tax return, open a 1-year certificate. When that matures, add your tax return money from that year, and so on. If you typically get thousands back every year, you could stockpile quite a bit of savings over a few short years!
Some things to save for:
- College costs
- Down payment for a car or house
- Emergency savings
If you don’t want to risk investing in the stock market or other, more volatile options, open a certificate!