What term for a CD is right for me?

Before choosing the term for your CD, ask yourself these questions:

• When will I need the money?
• Does it look like interest rates are going up or down?
• Do I have other money I can use in case of an emergency?

Choosing the term for your CD is an example of how you make investment decisions and manage your money. If you think interest rates will go up in the next few months, you should invest in a short-term CD rather than a longer one.

Remember, though, that you could be losing money if you hold off on investing while you’re waiting for interest rates to go up. For example, if you leave your money in a no-interest checking account while you’re waiting for interest rates to go up, the higher rate won’t make up for the period of time when you receive no return on your investment.