In the music world, CDs (compact discs) are becoming a thing of the past, thanks to downloadable music. In the financial world, CDs (certificates of deposit) are still a reliable tool that will always be stylish.

For the first time since the Great Depression, Americans are spending more than they save. According to the U.S. Commerce Department of Economic Analysis, Americans have a negative savings rate of .05 percent. Many continue saving, but they're spending more than they're earning by using either accumulated wealth (home equity, 401(k) funds) or credit cards.

If you're looking to return to a positive savings rate, consider the benefits of a certificate of deposit ("CD").

Why people like CDs

With their low-risk and guaranteed principal, CDs are an investment choice for people who want to avoid the roller coaster ride of the stock market. You invest a set amount of money for a certain time period-six months, one year, five years, for example. When that time period is over, the CD has reached its maturity date, and you receive your principal, plus the accrued interest. Certificates of deposit can be redeemed at any time; but if cashed before the maturity date, you will have to pay an "early withdrawal" penalty.

On paper, CDs seem pretty straightforward. But there are a couple of items that you need to watch out for before you make an investment:

• Callable CDs can be "called" by a broker before they mature. If this happens, you get back the full amount of your original deposit, plus any unpaid accrued interest.

• Know your maturity date. Many people are unaware when it's time to rollover the certificate of deposit or redeem it for cash.

• A financial institution's federal deposit insurance is limited to $100,000 per depositor. Check with the lender to make sure that they have such a policy.

• If you choose a variable-rate CD, know when the rates will adjust and by how much.

• See if there are any special features, such as death benefits, which allow heirs to cash the CD in the event of your untimely demise.

If you spend money like crazy, try spending some time shopping for a certificate of deposit. The CD is a financial tool that offers plenty of rewards with minimal risk, and could get you back in tune with the financial harmony of savings.