---
title: How to Diversify Your Savings Portfolio with a CD
description: Want to make your money earn more without the risks of timing the stock market? A Certificate of Deposit is a great risk-free choice.
---

[Momentum Online ](https://www.arizonafinancial.org/blog)

# [How to Diversify Your Savings Portfolio with a CD](https://www.arizonafinancial.org/blog/spending-and-saving/how-to-diversify-your-savings-with-a-cd)

 Written by [Arizona Financial Staff](https://www.arizonafinancial.org/blog/author/arizona-financial-staff) | Dec 19, 2023 5:25:07 PM

Did you know that your savings portfolio should be diversified just like your investments? Financial experts recommend giving your savings as much chance as growth as possible. Let’s take a look at an especially great choice for diversifying your savings: a certificate of deposit (CD).

Accelerate your financial goals with an [**Arizona Financial High-Yield Certificate of Deposit**](https://www.arizonafinancial.org/high-yield-certificate). Choose from a variety of rates and terms. Insured by NCUA.

### **What is a CD?**

A certificate of deposit is an insured savings account with a fixed dividend rate and a fixed date of maturity. The funds in these accounts will grow at a dividend rate that is usually higher than those on typical savings accounts and some money market accounts. 

### **How is a CD different from a savings account?**

There are several differences between a CD and a savings account, but the main one is the accessibility. With a savings account there are minimal restrictions on in-branch withdrawals; however, with a CD the funds can’t be withdrawn without penalty until the maturity date. 

### **Terms & conditions of CDs**

Some basic requirements to open a CD typically include having a minimum opening balance and commitment to keeping your money in the account for a set amount of time. Certificate term lengths also vary among financial institutions, with most offering a choice of terms ranging from three months to five years. 

### **Is a CD for everyone?**

While keeping your savings in a CD can be an excellent way to diversify your savings (and earn more than a basic savings), it’s not for everyone. Only go ahead with your decision to open a CD if you are fairly certain you will not need to access these funds before the maturity date. 

### **What are the advantages of diversifying your savings through a CD?**

Here are some of the most popular reasons people choose to open a certificate:

1. **Low risk. **Your deposits are insured by the National Credit Union Administration up to at least  $250,000. You can rest easy knowing your money is safe.** **
2. **Higher dividend rates. **Certificates offer all the security of savings accounts, but with higher yields.
3. **Locked-in rates. **The APY of your certificate is set when you open it and is locked in until its maturity date.

If a CD sounds like the perfect choice for you, visit [Arizona Financial](https://www.arizonafinancial.org/certificate) today to learn more. We’re committed to giving your money its best chance at growth.

[View full post](https://www.arizonafinancial.org/blog/spending-and-saving/how-to-diversify-your-savings-with-a-cd)

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