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Maximize Your Investments with O1ne Mortgage

Are you wondering whether it’s better to have multiple certificates of deposit (CDs) or one large CD? At O1ne Mortgage, we believe in providing you with the best financial advice to help you make informed decisions. Call us at 213-732-3074 for any mortgage-related needs.

Is It Better to Have Multiple CDs or One Large CD?

The number of CDs you should have depends on the annual percentage yield (APY) and the amount you’re investing. APYs and minimum deposits vary, so it’s essential to shop around. For instance, a jumbo CD might offer a higher rate but require a minimum balance of $100,000 or more. Alternatively, you might find a better APY on a CD with a lower minimum deposit. Rates also vary based on term length.

How to Maximize FDIC Insurance with Multiple CDs

CDs are a low-risk investment option, and funds are insured up to $250,000 per depositor, per insured bank, per category. To extend your coverage, consider having a joint owner on your account, spreading your savings across multiple financial institutions, or opening new accounts within different ownership categories at your current bank.

How to Build a CD Ladder

Building a CD ladder involves investing in multiple CDs with different terms, allowing them to mature on a staggered timeline. This strategy provides a predictable stream of returns and liquidity. Here’s how to create a CD ladder:

• Research CD rates and terms from various financial institutions.
• Decide on maturity intervals that align with your financial goals.
• Open and fund your CDs, keeping track of their expiration dates.

How Many CDs Is Too Many?

While there’s no limit to the number of CDs you can have, it’s crucial to diversify your investments. A balanced portfolio includes both low- and high-risk investments. CDs offer stability and steady returns, but don’t overlook other high-return investments that can help you keep pace with inflation.

The Bottom Line

Having multiple CDs can diversify your portfolio without sacrificing liquidity. However, owning too many CDs might limit your exposure to other high-return investments. At O1ne Mortgage, we’re here to help you navigate your financial journey. Call us at 213-732-3074 for expert advice on managing your investments and mortgage-related needs.

Investing is just one part of your financial journey. Managing debt and maintaining a strong credit score are equally important. Free credit monitoring with Experian can help you identify potential fraud and take action quickly.

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