Page 22 - AAA Now! – AAA Akron Auto Club – Winter 2020

FINANCIAL MATTERS
AAA
Four Reasons to Make CDs Part of Your Investment Strategy
What’s your investment strategy? Growth? Income? Asset preservation? Any investment strategy should start with a goal – for instance, saving for retirement or funding a child’s education. Your choice of investments to reach this goal will depend upon
your time horizon as well as your appetite for risk.
For most people, their appetite for risk decreases
with their investment time frame. In other words, the nearer you are to your goal, the more you’ll want to reduce risk in your portfolio. And that’s where AAA Certificates of Deposit offered through Discover Bank come in, whether those goals are months or years away.
AAA CDs offer a combination of access, liquidity, safety and growth potential that make them an ideal choice for those looking to reduce risk in their portfolios. With flexible terms and great guaranteed rates, Discover CDs help provide the peace of
mind that can be impossible to achieve when your savings are rising and falling in step with potentially volatile investment markets.
Access: You can purchase CDs in a variety of maturities – the AAA Deposit Program offers terms ranging from three months to 10 years – making
it easy to access funds when you need them. Keep in mind, however, that there is a penalty for early withdrawal, so you’ll want to plan your timing to match your specific needs.
Liquidity: CDs offer a greater variety of short-term investment horizons, making them an excellent choice for anyone seeking both security and liquidity.
Safety: CDs can be an ideal foil to the volatility of higher-risk assets such as stocks. Prices of bonds and bond mutual funds also can vary considerably since they react to changes in market interest rates. With a CD, however, you can lock in a rate and not worry about losing your principal. And finding the safest place to save is just as important. The savings you hold in AAA CDs are always FDIC insured up to the maximum allowed by law.
Growth potential: If you need a dependable return on your money, but don’t need your money for some time, CDs can be an excellent investment choice. You also can make your savings work harder for you: open multiple CDs with different maturity dates. It’s called “CD laddering,” and it’s a
great way to take advantage of the best CD rates for longer terms and ensure you have liquidity and flexibility when you need it since one or more CDs will always be approaching maturity. And when you save with a AAA CD, you can allow your interest
to accumulate in that CD or you can transfer it to another Discover account. CDs automatically renew when they mature unless you advise us otherwise.
So, whether you’re investing for the short-term,
or looking to lower risk in a longer-term portfolio
as you approach your goal, consider including
CDs as part of your investment strategy. Plus, AAA members receive preferred member rates on 12-,
24- and 60-month CD and IRA CD terms. You also should consider the role that AAA Money Market and Online Savings Accounts can play in your financial strategies. They offer easy access, highly competitive rates and the ability to manage your account online, at home or with Discover’s mobile banking app.
Open an account online in minutes at AAA.com/Deposits or call our 24-hour U.S.-based customer service at 888-728-3230.
Deposit Accounts offered through Discover Bank, Member FDIC.
The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.
DESTINATION
WEALTH Now with NO. FEES. PERIOD.2
Available to AAA members1, Discover Bank® has just removed all fees for all deposit accounts!2 While many major banks may charge you to maintain an account or tack on additional fees, a new account from Discover® has no. fees. period.2 That means more money in your pocket. Open an account today!
1Accounts offered by Discover Bank. Deposit accounts are subject to approval.
2Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network.
3Federal law limits the number of certain types of withdrawals and transfers from a Savings Account or Money Market to a combined total of six per calendar month per account. There is no limit on the number of
withdrawals by ATM or by Official Check mailed to you. If you exceed these transaction limitations during any calendar month we may refuse to pay each transaction in excess of the limitations. If you exceed these
limits on more than an occasional basis, we reserve the right to close your account.
4Competitor comparison information obtained from Informa Research Service, Inc. weekly, using Illinois savings account APYs.
- Online Savings Accounts3 - Money Market Accounts3
- Certificate of Deposits (CDs) - IRA CDs
All with rates that outperform the national average!4
Open an account today!
Call 1.800.347.7056 Visit AAA.com/Deposits
Mention Invitation Code: MMNOFEE1
©2019 Discover Bank, Member FDIC
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WINTER 2020
Now!