CD Rates May Be Robbing You Blind

Beating the House - CD rates are low because it helps the banks make a profit.

Are CDs really the best place to "park" money? Besides liquidity (quick access) what benefit does your CD have? In the case of CD rates, there are great big penalties that are forced by the banks or institutions offering the certificate of deposits; most of the time, we aren't disciplined. We don't think long term to let our money grow. Is it any surprise that 60-70% of Americans aren't prepared for retirement. No wonder 65% of Americans are worried about Retirement!. If your money is supposed to grow shouldn't you make sure you leave your money alone so your money can go to work for you. If your funds were untouchable for 6-12 months and you could still receive returns of 11-15%, why would you pass that up?

You may not realize it, but banks are doing the exact same thing with your CD money when you put it in the bank. Almost immediately the bank turns around, deposits it, and loans it out to someone else for a much higher rate. Why not cut out the middle man? One more detail that is more often than not unnoticed is that the interest rates for CDs are generally equal to to the inflation, which negates the idea that CD rates increases money intended for the investors. If your CD isn't beating the CPI or PPI by 1-3% you're probably losing money rather than securing it.

The feeling of security. Isn't that the lone saving grace for CDs? But as the CD's rates are desirable only in case of less significant banks or institutions, the notion of them being safe is offset. After you compare CDs with high yield private mortgages, the later trumps in all aspects: High yield private mortgages gives much larger returns making it an delightful investment option, and although the Federal Deposit Insurance Corp (FDIC) insures CD deposits, many citizens are bothered that the Federal Deposit Insurance Corp. (FDIC) is running in the red. Compare that to a mortgage which is protected by a portion of real estate as a rule worth 1-2X more than the mortgage. When you consider the benefit of operating a high yield private mortgages, it ranks way higher than CD rate as well as any other investment option.

As I type this, the FDIC is in the hole 8 billion dollars and Bank of America is putting warnings in their branches indicating they're not insuring some accounts above the required minimum of $100,000. Hows that for security?

One thing to consider. Since the early 1900's, homes have survived the depression, the stock market crash, booms busts and other economic issues. Regardless of how bad things are today - they will improve! Literally billions of people look at our way of life and want it - who doesn't want a place of their own. Why not name your own rates and get in on the biggest fire-sale in history and start earning what you're worth? We have several friends who have done this and have had great success they said they'd be willing to sit down with us and share their experiences.

Jason Gray is a Real Estate Entrepreneur started out with humble beginnings. At age 35 and nearly retired his goal is financial literacy for all Americans. To find out more about High Return Private Lending Ideas and get free educational materials, to to http://BetterThanBankCDs.com or click CD Rates.

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