The thing about money is that most people could use more, so making a commitment to investing can be difficult, especially when financial markets can be shaky. It’s hard to know which investments are wise. Those interested often investigate CD rates. While CD rates aren’t high, they offer a better rate of return than savings accounts and carry far less risk than the stock market. One especially nice feature is that deposits put into a CD are insured by the F.D.I.C. up to $250,000.

Because CDs are safe, they are a wise choice for those who want their money to continue to grow while they are waiting for other investment markets to bounce back. Depending on the level of commitment they want to put forth, people can put money in a CD for a few months or several years. With longer terms, CD rates are normally higher and investors can often get the best rates by searching online rather than simply investing through their regular bank. Because it is easy to search for CD rates online, higher levels of competition exist and rates are often higher. There are also many online banks that offer CDs at higher rates because their own costs are lower due to operating online where they use efficient practices such as paperless billing.

Just because a CD matures doesn’t mean an investor needs to cash it out. CD laddering is a technique that many investors use in order to get the most out of their investment. Many investors start out with a shorter term CD in case CD rates rise during the term of the CD. This prepares them to put their money into a longer term CD later at higher CD rates. Those who have the funds available can also experiment with a portfolio that combines both shorter term and longer term CDs, as well as more liquid accounts, such as money markets, that will allow them quick access to some of their money should an emergency arise.

Investors who want to save for or purchase big ticket items can coordinate their purchase with their CD investments. For example, if people want to buy a $1,000 computer and have the option to pay in six months, interest free, they may want to look at CD rates for a six month CD. They could earn interest on the money that is allocated to spend on the purchase, rather than immediately buying the computer.

Those who are the best at building wealth are skilled in managing all sorts of investments, strategizing how much risk they want to take, and taking advantage of the best CD rates they can find.