Another great investment option if you want guaranteed growth with little to no risk is a certificate of deposit (CD).
CDs are similar to high-yield savings and checking accounts because they offer much higher APY rates compared to regular accounts. In fact, the top-rated CD rates are usually much better than those of high-yield checking and savings.
This makes them a great option if you have some extra cash and want to see it grow with no effort.
Just like high-yield savings and checking accounts, CDs have restrictions on when you can withdraw your money.
When you open a certificate deposit, you have to agree to leave your money untouched for a certain amount of time, usually a few months to a year.
However, the longer you agree to leave it untouched, the higher your payout will be. A 5-year certificate of deposit, for example, will typically have a much higher interest rate than a 1-year certificate of deposit or even a 3-year CD.