Calculating CD Rates – APY vs APR
Calculating CD Rates The first thing people want to know when they are investing in a certificate of deposit (aka CDs), is how much money they will earn from that particular investment. In order for them to determine their potential earnings, they will need to educate themselves on the various ways to calculate their return by using the data that is accessible. The most important of these data points are the CD rates that come along with various certificates of deposit. Investors will want to … [Read More...]
Certificates of Deposit – A Wise Investment?
Certificates of deposit, also known as CDs, are a unique investment account that allows people to obtain a low risk investment that is insured by the federal government. Similar to your normal savings account, a CD will pay a specific interest rate. Generally, CD rates are higher than what a saving account yields. Between being insured and getting a higher than normal interest rate, CDs are great ways to save money for many people. Certificates of deposit have come a long way since their … [Read More...]
Will Interest Rates Stay Low?
If you're wondering when interest rates will rise, you're not alone. The Federal Reserve has kept interest rates painfully low since 2008. Their goal is to stimulate lending and speed up the recovery of the economy. However, it is still uncertain when and if they will raise interest rates soon. Smart investors will use this opportunity to take advantage of low interest rates. Paying off high interest debt One of the smartest things you can do when interest rates are this low is to pay off … [Read More...]
Independent Brokerage of CDs vs. Bank CD Investing
Investment CDs can be pretty confusing if you are new to the market. There are so many rules, limitations, and options for the investor. There’s high yield CDs, risk-free CDs, maturity CDs, and CDs with callable features. Especially in today’s financial market, it takes a lot research to compare current certificates of deposit, find the best interest rates, and make the best safe investing choices for your money. In the article below, we take a closer look at the difference between bank CDs … [Read More...]
Feds Cutting Rates: How Does It Affect Your CDs
With all the recent turmoil in Washington over federal bailouts and the general dismal outlook for the financial economy, it may seem like the overall answer regarding how this affects your and your finances is equally as dismal. It is a bit more complicated than this, however. Recently, we’ve all heard about the Federal government cutting national rates; but few of us know exactly who this helps, who this hurts, and who this overall effects the most and how. Below, we take a look at the one … [Read More...]
Investment CDs: What is a Jumbo CD?
In the current climate of the world’s economy, financial planning and investment has taken on a newer, more dramatic importance in the minds of every consumer. The Federal Government bailouts, interest rate cutting, and other related crisis plans have got us all a little bit more involved in learning about what our investments mean and the best actions to take to stay within safe investing parameters. In the spotlight is the common investment certificate of deposit or cd. This is because … [Read More...]
Strategies to Maximize Your CDs
Certificates of Deposit or CDs may seem like one of the last things on your mind these days, what with current economic headlines proclaiming doom and destruction, but cds are actually one of your only safe investing strategies in the current economic climate. CDs and other risk-free investment accounts are the best places you can secure your funds until prosperity returns as they are FDIC-insured (up to $100,000), and-depending on what type of cd you entertain-will always gain you some … [Read More...]
