However, you should be aware of the prevailing market prices for your CDs in order to avoid loss of capital in the case where you are selling CDs. The price you receive could be higher or lower than the price you originally paid, depending on current market and economic conditions and the financial health of the issuer. For example, if you decide to sell your CD at a time when interest rates have increased significantly from the rate your CDs pay, then you can expect a lower price for them. So you would have to lower the price of your CD until it's interest payment equals the prevailing interest rate. Generally interest is paid at maturity for CDs maturing one year or less, while longer maturing CDs may pay interest semi-annually or even monthly.
All investors can benefit by investing in CDs and adding safety to their portfolios.
Each individual must look at their own investment strategy, age, market conditions and ability to handle risk in order to determine how much of their portfolio is to be conservative investments. The value of your investment is calculated daily and consists of many different types of investments. A fund allows the small investor to participate in many larger investments without directly participating in these investments and a fund provider will have information about what investments they are buying and selling. What gives you a degree of safety in a money market fund is the diversification of investments and the short length of term of their investments. They will include investment vehicles such as treasury bills, banker's acceptances, commercial paper, large CDs and others.