How safe are cds?

are they a good investment? can i lose my money if the market goes bad?

100% safe.

very, but dont expect much return. the higher the risk the higher return

Hell no. They are great. Go to your local bank or Bank of America.

FDIC insured. This means that even if the bank at which you have purchased the CD from somehow goes under, the government will cover the CD. So the only way you will lose your money is if first your bank goes under, then the U.S. government totally collapses. Your money is secure.

CD's are not tied to the economy, so the return will not decrease in the event of a recession, also you will not realize a larger return in the event of a boom.

Certificate of Deposits are lending investments with a bank or brokerage. It's kind of like a higher interest savings account where you promise to leave your money with them for a specified period of time. The bank loans out your money to people to buy houses and cars, and then uses their payments to help pay your interest.

First of all, a CD from an established bank is safe just because the institution has access to a lot of money and runs its business in a conservative fashion. Furthermore, most banks are backed by the FDIC (Federal Deposit Insurance Corporation). This is from the Federal government, and it insures your account up to $100,000. In the event that the bank goes bankrupt, the government will bail you out.

You are more likely to die in a car crash on your way to school or work than to lose money in a bank CD. Something pleasant to think of.

CDs are very secure. The FDIC insures the accounts in your name at a given bank up to $100,000. If the bank fails, you won't get your money immediately, but you will get it. CDs are available in varying maturities. 3 month, 6month or 1 year CDs often pay interest only on maturity. Some CDs pay interest monthly. CDs usually carry a penalty for early withdrawal (several months interest). CDs are not tied to the (stock) market. The risk associated with CDs is a "lost opportunity" risk. An example is you purchase a 1 year CD paying 5.00%, and 1 month later CDs paying 5.50% interest are being offered but you funds are tied up for another 11 months.