A CD or Certificate of Deposit will typically come with a rate that is superior to a typical savings account. However, this great deal does not come without a catch. The higher interest rate is granted as a result of the loss of liquidity. You may not withdraw or deposit funds from a CD. Jumbo CD rates can grant higher rates on larger accounts (typically $100,000 or more).
If you do need to withdraw money in the face of an emergency, you will get hit with an early withdrawal penalty. CDs are in integral part of any intelligent investment strategy, but funds that are placed in a CD must remain in the account for the allotted time period. When shopping for a new CD, it is vital to check rates from numerous sources.
CD Rates 1 Year
|BAC Florida Bank||$1,500||1.26%|
|First Internet Bank||$1,000||1.21%|
|My Savings Direct||$1,000||1.05%|
|Bank of Internet||$1,000||1.00%|
No risk certificate of deposit rates
Current interest rates have ceased dropping, but it would be difficult for them to move any lower. Although interest rates, and Los Angeles mortgage rates are low, CDs are still a vital financial tool. Unlike other financial investments, CDs are FDIC insured for up to $250,000. CDs play a large role in retirement portfolios, especially for those closing in on their retirement age. For additional government guidelines, view the FDIC’s article on CDs here. IRA CD rates are a great option for those looking for safe options for their retirement accounts.
Unlike investing in the stock market, a CD will always yield a constant return on your investment. The increased safety of a CD makes it an attractive alternative to stocks.
CDs may have lower rates than their stock market counterparts, but that does not mean you shouldn’t seek out the best rates.
As the expiration date for your CD approaches, it is important to educate yourself on what your rate is in comparison to rates at competing banks. If there is a large enough gap between your renewal rate and competing rates, you should consider switching banks. Utilize our savings calculator to determine the amount of money you could potentially gain.
Local banks can also offer great deals on CDs, so it is important to be vigilant for deals. Online banks can also offer high rates due to their lack of overhead costs.
When opening new CDs, ensure that your account is federally insured. You should look for FDIC insurance for banks and NCUA insurance for credit unions.
Bromoney is the best source for high interest CD rates, savings rates, credit cards, checking account rates, and money market accounts.
A little research would be wise before investing your money in an unfamiliar bank. You can use the FDIC’s bank find here to investigate FDIC banks.
A small bank can often be part of a larger banking network. The FDIC’s bank find feature will alert you to this fact.
Remember that it pays to do your due diligence when searching for new banks to invest with.