Are CDs coming back in 2026?
Yes, certificates of deposit (CDs) are exceptionally safe and completely protected if the stock market crashes. Standard CDs issued by federally insured banks or credit unions are backed up to $250,000 per depositor by government agencies like the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). Unlike stocks, mutual funds, or corporate bonds whose valuations plummet during severe economic downturns or market corrections, a CD's principal and accrued interest are fully guaranteed by the government, making them immune to market volatility.
Related FAQs
The annual interest return on a 10,000 US dollar Certificate of Deposit is dictated by current market interest rates and the agreed-upon Annual Percentage Yield locked in when the account is opened.