This is a YouTube video titled "Should You Buy a Certificate of Deposit (CD)?" containing an explanation about certificates of deposit as cash investments, their terms, benefits, and considerations regarding interest rates and principal safety. The content is educational and presented by a single speaker without mention of Jim Dahle.
A CD is a cash investment like a savings account or money market fund. It has the main benefit of a cash investment. It will never lose principal due to market or interest rate fluctuations. A CV is simply a savings account with a term. Terms typically range from six months to 10 years and while you can usually access your principal even if you withdraw your money before the end of the term, usually account at the same institution. The longer the term, the higher the interest rate the CE will pay. So it depends on future interest rate movements. If interest rates rise, you would be better off with a savings account or more likely a money market fund. If interest rates fall, you would be better off with a bond or bond fund. It also depends on whether you might need the money before the term is up. But if you want an investment that will not lose principal even if rates go up and that will pay more than a savings account, if rates stay the same or go down, a CD will fit that bill.
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