Consider these helpful guidelines:

• Identify your needs and goals up front. Do you need income now or later? Plan your investing to meet your needs and goals.
• Choose the longest term you can afford. The longer the term, the higher the interest rate.
• Allow the interest to compound. If you are not relying on the interest as part of your income, don’t spend the interest when you receive it. Let it build up so that you can earn interest on your interest.
• Determine how much liquidity you need. Keep only the amount of money necessary to cover short-term needs in a short term CD. Keep the rest in longer-term, higher-interest CDs.