Low Interest Rates on CDs Helping to Sell Riskier Investments

There are two main benefits of investing in certificates of deposit: simplicity and safety. And in this world, these two benefits are worth an incredible amount. There is no price you can put on knowing you're not going to lose your life savings because some Wall Street guys thought they were clever.

However, simplicity and safety are obviously not the only thing you want out of an investment. You also want a return on your money.

At the present time, interest rates on CDs (and savings accounts) are low enough to cause many investors to wonder whether a CD is much of an investment at all.

The reality of low interest rates on CDs is in fact being used to sell other investment products. Including:

-- Mutual funds

-- Penny stocks

-- Municipal bonds

-- Corporate bonds

-- Peer-to-peer lending

Salespeople hawking these products typically use "it's a better return than you'll get on a CD" as part of the sales pitch. This hits home with many conservative investors who are frustrated by lack of yield on CDs.

While it may be wise to diversify part of your savings into higher risk, potentially higher reward investments, it is vital to always remember the higher risk part of the equation.

CD interest rates may be low for now, but simplicity and safety are nonetheless highly valuable things.

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