Connect with us

Tech

Advantages and Disadvantages of Certificate of Deposit

Published

on

Certificate of Deposit

The way of earning interest on money that a person saves by locking it away for a certain time is called a certificate of deposit. If a person finding a suitable place to park his funds for a definite period and calmness of his mind certificate of deposit is the worth option. In CDs, banks give a certificate stating the amount an investor deposited, the interest rate being paid, and how long money must retain in the account. CDs keep the money safe while earning interest. However, if a buyer tries to make money out there will be penalties for him.

How do CD Works?

  • Firstly, buy a CD at a reasonable price.
  • The interest will grow in regular intervals or annually. 
  • An investor can earn money from CD by just sitting at home.
  • At the end of the term when the CD matures an investor receives his original amount along with interest back.

Advantages and Disadvantages of Certificate of Deposit 

Advantages of CDs

Here are the various advantages of CD. Many advantages make CD appealing to investors. Given below are CD advantages:

  • Security

Secure investment is comparatively the most attractive aspect of the certificate of deposits. The matured CD maintains its expected purchase value even when the market value changes. 

  • Terms Flexibility

Here is an option for the investors that he can choose a strategy that meets their needs. An investor can go with long-term and short-term CDs according to his financial conditions. Long-term CDs yield much more than a short-term CDs. But short-term CD can also yield more if store in saving accounts of high-interest.

Here are some additional forms of CD investors can choose from:

  • Step-up CDs

Step-up CD allows the investor to lock the rate of interest in a deposit account for a determined or short period of months. In step-up CDs purchasing rates of savers step-up at regular intervals. When CD matures interested rates in accounts increases generally many times.

  • Liquid CDs

An investor can make withdrawals without receiving low or no penalty in liquid CD. Investments such as mutual funds, bonds, and stocks are considered liquid assets. It offers low rates of interest as compared to traditional CDs. 

  • IRA CDs

IRA CDs are CDs in individual retirement accounts. IRA CD investing is a secure and famous strategy of investment. If an investor is looking for the best option that guaranteed returns his retirement funds so, IRA CDs are the option. By this, a person can save his money for retirement.

  • Bump-up CDs

It allows investors to exploit new interest rates that are relatively higher than previous during the complete duration of the CD. It is also known as raise-up the CD rate. It gives options to increase the CD during its term of maturity.

  • CD Ladder

It is a group of CDs with different term lengths. An investor can choose a ladder besides flexible terms. It is a strategy in which a saver divides its money equally and invests it in CDs with variant maturity dates. When CD matures the invested money along with interest is again reinvested. It creates a reoccurring investment a CD is again invested for five years. It will reduce the reinvestment and interest rate risk. The interest paid rate will be higher when the term is also higher.

  • Better than Saving Accounts

The expected interest yield of saving accounts is about 2.0 to 2.15%. The average interest yield of CD is around 2.71 to 2.35% which are the best rates. Interest rates that apply to CD are relatively far greater than the rates of saving accounts with a longer-term.

  • Predictability

CD brings predictable income rates which are its reputed feature. An investor has all the information that what will be the exact worth of investment at the end of the term. When CD matures there will be no decrease or increase in accrued interest. These are free from market-based surprises that are present in the stock market.

Disadvantages of CDs

Although it is secure and predictable it is not suitable for everyone like those investors who want cash before maturity or those who want higher return rates of their investments. Here are some disadvantages:

  • Low Returns

Although the return rate of CD is relatively too higher than saving accounts but too lower than the higher-risks and aggressive bonds and stock investments.

  • Risk of Inflation

In most cases, the inflation rate greatly increased than the CD interests generally the inflation rate is not compatible with CDs. There are always risks for the investors that if inflation is increased, the investment will lose its rate of purchase time by time and interest gain will reduce. 

  • NO Liquidity

CDs are designed in a way to attract savers to keep their money in CD till the end of term until it matures. Generally, people cannot withdraw money from CD as they can do with saving accounts. In this way, assets cannot be considered liquid. When the savers withdraw money before the term they have to pay a penalty or extra fee.

  • Risks of Re-investment

Investors who invest money in CD rates will face re-investment risks. When the rate of interest is reducing their investment yield is also decreased. 

  • Burden of Tax

The burden of tax is also the downside for the investors of CD. If an investor is facing low rates of interest and interest of tax decrease the amount of interest to a much lower rate. It can be adjusted by those who have knowledge about tax rates and plan according to it.

Conclusion

Certificate of Deposit are the financial products offered by banks that give the premium interest rate to the investors on their money. An investor cannot draw the money for three, six, or eighteen months. It is a safe strategy of investment. The interest rate can be fixed or different. A person can choose a CD strategy of his need. But there are some risks for the investors. These risks can be overcome by making a CD ladder of various maturities in the shorter term able the investors to take benefit of higher rates when their CD matures.

Learn more about : Advantages and Disadvantages of Green Card

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech

Reasons to Use Content Moderation

Published

on

When you think about what is content moderation?, what comes to mind? Likely, some of the first things that come to mind are safety and security. But there are other reasons to use content moderation, too. In this post, we’ll cover three of those reasons. First, content moderation can help you build a positive reputation online. Second, it can help you protect your brand and trademarks. And third, it can help keep your site compliant with regulations. Keep reading to learn more!

If you’re running a website, it’s important to make sure that the content is moderated. Unmoderated content can be damaging to your reputation and can lead to legal troubles. Here are four reasons why you should use content moderation.

In a world where online content is constantly proliferating, it’s more important than ever to use content moderation to ensure that your website remains safe and professional. Content moderation can help you filter out inappropriate or offensive material so that your website visitors can focus on the information you’re providing them. Here are just a few reasons why content moderation is such an important tool:

1) It keeps your website safe and secure.

2) It helps you maintain a professional image.

3) It prevents inappropriate or offensive material from being posted.

4) It makes it easier for people to find the information they’re looking for.

5) It protects your reputation as a web-based business.

6) It increases user confidence in your website.

7) And lastly, it’s essential to comply with various regulations governing online content.

Content moderation is an important part of online communication. By moderating your content, you can ensure that it is appropriate for your audience and meets your standards. There are many reasons to use content moderation, including preserving brand reputation, protecting users from harmful content, and complying with laws and regulations. Implementing a content moderation strategy can be beneficial for your business or organization.

AI content moderation API with over 99% accuracy for images and videos. Real-time responses at a fraction of the cost. End-To-End Solutions. Full-Stack Approach. Types: Video Moderation, Image Moderation, Text Moderation, Audio Moderation.

Search Results

Featured snippet from the web

A team of content moderators in place would ensure that nothing offensive or upsetting gets to your site. It will also protect your audience from possible bullying or trolling by some irrational users. Moderating user-generated content can also provide a valuable opportunity for pattern recognition.

FAQS;

Why is content moderator important?

Content moderation protects your brand — and your users.

Having a team of content moderators on hand reduces the risk of visitors seeing content they may consider upsetting or offensive. Content moderation also prevents bullies or trolls from taking advantage of your brand online.

Why is it important to use social media in moderation?

Social media moderation helps in reducing offensive, profane, and hateful comments thus making the platform safe for everybody which eventually helps brands in enhancing their online presence.

What are the uses of content moderation?

Content moderation is the job of screening for inappropriate content that users post on a platform. The goal is to safeguard the users from any content that might be unsafe or inappropriate and in turn, might ruin the online reputation of the platform its been published.

What’s expected of the content moderator?

A content moderator is a skilled professional who handles the submission of user-generated content to an online platform. Their job is to ensure that content creators and managers place the content items correctly and ensure they are free from scams, errors, and any illegal or copyrighted content.

What are the types of content moderation?

6 types of content moderation you need to know about

Pre-moderation. …

  • Post-moderation. …
  • Reactive moderation. …
  • Distributed moderation. …
  • Automated moderation. …
  • No moderation.

What is a moderation strategy?

You get to decide what members are likely to see. Your moderation strategies shape what members see and, thus, what members do. Moderation isn’t removing the bad stuff, it’s making clear decisions about what you want members to be doing, and emphasizing those elements.

Conclusion :

Content moderation is an important part of online marketing, and it’s something that all businesses should consider. Not only does moderating your content help to keep your website clean and professional, but it can also improve the user experience by ensuring that people see quality content when they visit your site. Let us know in the comment section if you’ve had success with content moderation, or if you have any questions about how it can be implemented into your own digital marketing strategy.

By using a third-party moderation service, you can ensure that all content associated with your company is appropriate and compliant with your standards. Let us know in the comment section how you moderate content on your website or social media pages. We’d love to hear from you!

Continue Reading

Tech

What Are The Best Modern Serif Fonts

Published

on

What Are The Best Modern Serif Fonts

If you’re looking for modern serif fonts, several options are available. For example, you can try Ravensara Sans or Optima. Or you can even use Futura. The choice is yours, but understanding the different categories will help you make the right choice.

Ravensara Sans

Ravensara Sans is a stylish sans serif font family available in 7 weights. Its clean, contemporary letterforms make it an excellent choice for various projects, from branding to album art. Its versatility also makes it an excellent choice for short texts and headlines.

Its sharp edges and rounded corners make it an excellent choice for titles, invitations, and other printed materials. It also has a full set of uppercase letters, multilingual symbols, numerals, and punctuation. This typeface’s modern and clean style makes it a versatile option, making it suitable for various printing processes, including laser cutting and gold foiling.

Its clean, even lines make it an ideal choice for headlines and large text. Leaner is available in three weights and is suitable for small and large-sized text. This sans serif font family also features 510 glyphs, which are ideal for headings and logos. In addition, the font family includes the popular Grotesque Extra Bold, a modern take on the grotesque style but retains some of the character and traditionalism associated with those styles.

Optima

This sans serif typeface versatility makes it an excellent choice for print and online projects. Its gregarious nature allows it to mix well with virtually any serif design.

Another modern sans serif font is Futura PT. This geometric typeface brings modernity and complexity to the Value Serif style. Its unique style will add an edge to your design. Inspired by the classic grotesques, Futura PT is versatile and suitable for any purpose.

Its simple, geometric design is suitable for serious prose. You can use it for headers, email, websites, and other text. You can also use it in CVs and presentations. It is one of the most popular sans serif fonts in use today.

Futura

Futura is one of the most famous typefaces, based on the Bauhaus design style.Its low x-height makes it ideal for body text. The font also includes old-style figures and small capitals. It is available in both digitized and conventional versions.

It is widely considered the most important typeface from the Bauhaus movement. It blended old-style figures and geometric forms and was influenced by the design philosophy of the Bauhaus school. Renner used the design office at Bauer Type Foundry to help him create his typeface family.

It is a geometric sans-serif typeface, originally released by Paul Renner in 1927. While it shares similarities to Bauhaus typefaces, it was designed faster and with more features than its predecessors. As a result, Futura quickly became one of the most copied typefaces in graphic design history.

Final Words

Many different commercial fonts are available today, but the best modern serif fonts are versatile and easy to use. There are a variety of serif fonts out there, so it is important to find the one that will fit your needs and style. With so many options available, finding the right one can be difficult, but with a little effort, you can create beautiful and stylish documents. Read this post carefully to know more about sans serif fonts.

Continue Reading

Tech

How to Set Up a Successful Amazon Store From Scratch

Published

on

Whether you’re entirely new to retailing or you’re looking to move your operations online, setting up a successful Amazon store from scratch is challenging. You’ll have plenty of hoops to jump through to get established on the platform in the first place, and then you’ll need to pursue an aggressive marketing strategy to build your visibility and sales as quickly as possible. This article shares some tips on the process, guiding you to Amazon seller success in as short a time as possible.

Setting Up

There’s a simple sign-up process for new sellers on Amazon that you’ll have to follow to get featured on the platform. This will ask you to enter some data about your business, your products, and your jurisdiction. You’ll need to get all of this right, though you can edit this information in the future if your store changes. You’ll then be asked to upload your first products to your store. When you’re doing this, there are some key tips to follow:

  • Only use high-quality photographs, and several of them, to show off your products
  • Make sure your product descriptions are high in quality and explain your products to consumers
  • Do pricing research to understand how your competitors are pricing similar products

These three factors – photographs, description, and price – are all paramount to your ongoing success on Amazon.

Marketing

 Now that you’ve set up your store and you’ve created exciting product listings, it’s time to focus all of your energies on marketing. If you’re a confident marketer in your own right, you should feel free to go it alone and use all of the tools in your repertoire to show off your new online store. If you don’t feel confident in online advertising and Amazon marketing, though, you should look to partner with experts who are.

Nuanced Media are Amazon seller consultants who can help you build visibility for your store and sales on your product pages. They’re able to crunch your data to identify areas in which you could benefit from a targeted marketing campaign. Get in touch with experts such as these to turbocharge your marketing efforts in your first few weeks on Amazon.

Long-Term Traffic 

Once you’ve made your first few hundred sales, Amazon’s algorithm will recognize you as a trusted seller that they will be happy to feature on their product listings page. You’ll still have some work to generate long-term traffic, views, and purchases. The key here is how you deliver for customers, as the best products will get more 5-star reviews from consumers.

You’re looking to generate as many of these glowing reviews as possible, and that might mean going the extra mile to generate customer satisfaction. Wrap your products elegantly, so your package appears pleasant when it’s delivered. Include a discount code in that package to encourage return customers. And do all you can to ensure it’d delivered on time, exceeding expectations where possible.

These three key tips will help you set up a successful Amazon store in as short a time as possible.

Continue Reading

Trending