ho-me-refinancing.com If you want an investment that maintains your principal, Certificates of Deposit (CDs) are a great way to go. The best feature of a certificate of deposit is lack of market risk because the rate is guaranteed for the life of the deposit and you don’t have to lose sleep over night thinking you’re going to lose 50% over a few months. Certificates of deposits (CD) are short to medium-term debt instruments Issued generally by commercial banks and other financial institutions to investors Investors will lend money to the institutions for a certain amount of time in which investors cannot withdraw the amount. In exchange, the banks will pay a predetermined rate of interest to the investors called Certificate Of Deposit Rate (CD Rate). Buying a CD during the times when interest rates are at their highest can give an investor higher returns. Given this, investors who’re planning to cash in on CDs would do well to research on the history and the trends of CD rates, as this can help them plan on when would be the best time to get in on the action 01. Doing the research With the Internet and technology today, it’s so easy to find the best rate. Start using services online where you can find the best rates. Never ever just sign up for the first CD rate you see because you’re just asking for trouble. Your typical brick and mortar stores usually have the worst rates. This is why I would recommend you bank online. Continue to part 2 But if you want to learn more …

www.FinancialCoachShow.com The Financial Coach explores the ideas of bond ladders, fixed income and past historical context of interest rates. Is locking your money up for years upon years at current levels a good idea? Check it out

ho-me-refinancing.com Part 2 02. Look at the fees: There are so many banks out there and each of them varies. You’ll find that some want you to invest 000 at the beginning while others will only want you to invest 00. Make sure you know what you can afford to invest and what you can’t Because generally the more you invest, the more you can get in terms of your rate. The amount of interest that you can get on a CD can be determined with the help of Certificate of Deposit Calculator Which requires you to feed up some details regarding the amount of deposit, required rate of return etc. 03. Verify the bank is federally insured on the FDIC CDs in the US are protected by the Federal Deposit Insurance Corporation (FDIC) if they are issued through a bank. You must verify the bank is federally insured on the FDIC. I assuming that they are, look at the size of the bank (assets), their capital (or equity), the Equity/Asset ratio (look for 7% or greater), their profit (or loss), age of the bank (new banks usually carry an operating loss for about 3-years), And finally their total risk-based capital (should be 10% or higher and this means the bank is considered to be well capitalized) to learn more about CD Rates Please visit our website: ho-me-refinancing.com/cd-rates

First, many people just like investing in short-term CDs. Investing in 6-month CDs would have returned an average rate of 4.367%. If you opted for 1-year CDs then the average rate would have been 4.769%. At this point, 6-month rates and 1-year rates are quite a bit above the historical averages. Historical CD rates for 3-year CDs have been 5.071%, 4-year CDs have been 5.170%, and 5-year CDs have been 5.383%. This means the short-term treasuries have a higher yield than the longer-term. Historically, a drop in rates has followed an inverted yield curve. Certificate of deposits with longer maturity periods pay higher rates than those with shorter maturities. Regardless of the reason, all types of investors want to earn the highest CD rates ie, best CD rates. Before purchasing CDs that offer best rates, customers need to consider two factors, the length of the maturity period and the current interest rate environment. The investor foregoes alternative courses of investment. For all these risks that investors experience, banks pay best CD rates on such units. Similarly bulk buying also fetches investors best rate because banks may insist on meeting minimum requirement for offering best rates. When looking at Best Bank CD rates, it’s important first to understand where this bank operates primarily, as it is not a national bank. Rates in Michigan are slightly different than those in Georgia, so we’ll list the Michigan rates here with the Georgia BestBank CD rates in paranthesis …

Don’t know if that’s a newbie question but is there? I have a theory strategy in my head of keeping most of my invest-able assets in stocks when CD rates are low then selling stocks and buying CD’s when the interest rate is above 5%. This allows me to have cash on hand when a stock market crashes… allowing me to invest heavily when prices are attractive.
Moneyman – So does my strategy make any sense?