There are many investment vehicles that you can use in order to make money. Obviously, some of them offer more of a risk than others. With that being said, a certificate of deposit is one option that you may want to consider. Although investing in CDs is not a great way to make tons of money, if you are interested in solid returns and low risk you should search for the best CD rates.
CDs range in term from one month all the way up to five years. As an investor you will have to make a decision on what term is right for you. Some people find that long term CDs give them a better chance of compounding interest without having to fool around with rolling them over, etc. But of course, this is a matter of personal preference. Once you become used to investing in CDs you will have a much better understanding of what you need to do in order to succeed.
One thing that you should remember about a CD is that you are not allowed to get your money back until the term is up. If you must absolutely do so you are going to get hit with a penalty that is going to end up costing you money as opposed to making it for you. So if you are not ready to have your funds locked up for the long term, you will be much better off avoiding CDs at all costs.
With a CD you are promised your principal as well as interest when it reaches maturity. The interest rate that you receive on your CD will be agreed upon up front. Make sure that you search around for the best CD rates. Contrary to popular belief, the rates of CDs will differ greatly based on the institution that you do business with.
Before investing in a CD there are several things that you will need to decide on. Just like any other type of investment, it is important to consider every last detail so that you get as many benefits as possible. First off, decide on the term of the CD. As mentioned above you can settle on anything from one month to five years. From there, you need to get a better idea of how much money you want to invest. As you can imagine, the more money that you invest the more you are going to make on interest. Finally, there are two options of what you can do with your earned interest. You can either reinvest it, or it can be given to you upon earning. This is a big decision for you to make because this will have a lot to do with your overall investing strategy.
At this point you may be thinking how the bank benefits from CDs, right? Simply put, by purchasing CD you are letting the bank use your money for a certain period of time. This allows them to do what they want with the money, such as offering loans, etc. Since the bank will be using your money, this is why you will have to pay a penalty if you attempt to withdraw your money before the term is up.
When it comes down to it, CDs are a safe way to invest money and make a good return by way of interest. Finding the best CD rates will allow you to make more than you ever thought possible.
Best CD(Certificate of Deposit) Rates
National City Bank 5.00% APY 48 Month CD
Saturday, May 10, 2008
National City Bank is offering a 5.00% APY 48 month or 54 month CD special and will last through March 15, 2008. The minimum deposit to open is $10,000. You can also settle for a lower 4.80% APY for a deposit under $10,000. To qualify for this CD, you must have an existing National City National Ci.. .. read more..
Alliant Credit Union 4.90% APY Jumbo Share Certificate
Friday, March 7, 2008
Alliant Credit Union is offering a 4.90% APY Jumbo CD rate with very flexible terms of 12 to 17 months. The minimum deposit for this rate is $25,000. Opening a CD Account : You are required to become a member with Alliant Credit Union by opening a primary savings account with Alliant Credit Union f.. .. read more..
Evergreen Private Bank 5 Month 4.25% APY Certificate of Deposit
Thursday, March 6, 2008
Evergreen Private Bank is listing two very competitive Certificate of Deposit rates. These include a 4.25% APY 5-month CD and 4.15% 12 month CD. The minimum desposit to open is $10,000. Either new money or additional account relationships are required. The rate table is dated at 2/8/2008 but the ra.. .. read more..
Washington State Bank (Westsound) 6 Month 4.20% APY Certificate of Deposit
Thursday, February 28, 2008
Westsound Bank has a special 6-month Certificate of Deposit with a yield of 4.20% APY. The minimum deposit eligible to earn APY is only $500 ($100 for IRA accounts). I called customer service and was told a walk in sign up is required for this account, and membership is available only to those who .. .. read more..
PenFed Credit Union 5.00% APY 7 Year Certificate of Deposit
Saturday, February 23, 2008
Pentagon Federal Credit Union has several long term CD specials with competitive rates. PenFed Credit Union’s highest CD rate is currently the 7 year 5.00% APY Certificate of Deposit with $1,000 minimum. There’s also a 4.50% APY 3 year CD with the same requirements. Both are also available as an IR.. .. read more..
Millennium Bank 4.26% APY 6 Month CD Special
Tuesday, February 19, 2008
Millennium Bank is offering a 4.26% APY 6 month Certificate of Deposit special with $1,000 minimum deposit. While a 4.26% APY yield may not seem very high, but after the massive recent Fed rate cuts, this is a competitive CD rate. The interest on this Certificatie of Deposit compounds and pays quar.. .. read more..
Flagstar Bank 4.40% APY 12 month CD Rate
Monday, February 18, 2008
Flagstar Bank is offering the highest 12 month Certificate of Deposit rate at 4.40% APY in selected states. The minimum deposit is only $500 and it can be opened as an IRA account. Flagstar Bank is also offering a competitive, 25 basis points lower 18 month CD at 4.15% APY yields. The deposit requi.. .. read more..
Countrywide Bank 4.75% APY 6 Month Certificate of Deposit
Wednesday, February 13, 2008
Countrywide bank is currently offering the highest yielding 6 month CD at 4.75% APY. The minimum deposit required to open this account is pretty high at $10,000 with compounding daily interest. Monthly checks are also available but account earnings and balances are usually paid in full at maturity… .. read more..
Indymac Bank 4.25% APY 3 Month CD rate
Monday, February 11, 2008
Indymac Bank is offering a 4.25% 3 month internet only Certificate of Deposit with $5,000 minimum deposit. More info, please check out CD Rates Blog. This is the highest yield APY CD rate on Indymac Bank’s for 90 days to 5 years CD rate tier . Due to the recent massive fed cut, all CD terms longer than 3 months will drop into the 3.00% APY .. .. read more..
Luther Burbank Savings 4 Month 4.75% Liquid Certificate of Deposit
Friday, February 8, 2008
Luther Burbank Savings is offering a great 4 month 4.75% *liquid CD with a minimum $10,000 deposit. Its other terms at selected branches are also very competitive with the Santa Rosa, San Rafael, and Palo Alto branch offering a special 90 day 4.85% APY CD. This Certificate of Deposit has no deposit.. .. read more..