Opening a Certificate of Deposit (CD) is a smart financial move for individuals who prioritize safety, predictability, and preserving their capital. They serve as an essential component of a well-diversified financial portfolio and can help one achieve short-term financial goals while providing peace of mind through their low-risk nature. However, one should consider the potential impact of inflation on personal savings and avoid these seven mistakes when opting for such an investment. Not looking for the best rates available One of the most common mistakes people make when opening a CD is not shopping around for the best interest rates. Many individuals simply walk into their local bank and open a CD without considering other options. This can be a costly mistake because interest rates on CDs can vary significantly from one financial institution to another. It is essential to research different financial institutions to find the best CD rates available. Online comparison tools and financial websites can help easily compare rates from various institutions. Conducting extensive research will ensure you get the best return on investment. Ignoring the fine print Another common mistake when opening a CD is ignoring the fine print of the agreement. Many individuals are so eager to lock in their funds and earn interest that they don’t take the time to thoroughly read and understand the terms and conditions of the CD.