Consider Various Banks Before Investing For Best Cd Rates
Though CD rates are subject to rise and fall with market interest changes
, many people show interest to invest in certificate of deposits due to their higher interest rates of return rather than any other forms of bank or credit union deposits. Top certificate of deposit rates are available for longer terms i.e. the longer the certificate of deposit term you are willing to lock yourself into, the higher the CD interest rate you will receive in return. In order to enjoy the higher interest rates that CDs afford there is a liquidity and access to your money to some extent.
The best CD rates these days are not great anymore as it seems. As the interest rates are getting cut, the best CD rates and the top high yield savings account rates are definitely not as attractive as they once were. So the best way to maximize your CD rate of return and to ensure a reasonable degree of accessibility to your certificate of deposit money is to set up a certificate of deposit ladder. The process of laddering CDs involves the purchase of multiple CDs with different term limits so that they ultimately mature at fixed regular intervals. This affords the deposit holder additional liquidity, allowing him to take advantage of rising interest rates and still be able to continuously invest.
The top online banks can afford to provide their customers substantially higher rates on their certificate of deposit deposits and investments due to the much lower overhead costs associated with running web-based services. However the customer cannot withdraw the CD in the middle failing which attracts a heavy penalty to the bank.
Bank CD rates are varying. The best CD rates are sometimes offered by large retail banking giants like Citibank, Bank of America, JP Morgan Chase, or even Wells Fargo. When compared to other investment options offered by ING, the CD rates are not higher. Bank of America offers highest APY of 2.51% for a 5-years certificate of deposit. It also offers a 10-year certificate of deposit with an APY of 3.51%, but the minimum investment amount is $5,000 for CD and $2,000 for IRA Accounts.
Another CD you can afford is Charles Schwab's which has many features. It can be purchased at any time and any day. Different term periods have different interest rates so that the customer can choose according to his need. Moreover the customers can purchase this certificate of deposit online also. Sun Trust Bank offers good returns on your investment. The minimum balance for investing in certificate of deposits $2,000. Another good option is Astoria Federal Saving Bank. Anyone can invest in these CDs because the minimum balance for these deposits is $500 and for a 5-year certificate of deposit it offers an APY of 3.00%. Always enquire in as many banks as you can to be satisfied with your investment.
by: Kristi Ambrose
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