2012年5月31日 星期四

Jumbo Certificates of Deposit Rates - Benefits of High CD Rates For Maximum Returns


Jumbo certificates of deposits are extremely useful if you who want MAXIMUM RETURNS by investing a considerable sum of money into a CD account. This kind of account is particularly useful if you are looking for HIGH RETURNS i.e. some millions of dollars with low risks. Jumbo Certificates of deposit rates vary widely for investments based on the amount that is invested as well as the time frame for which it is invested

The jumbo cd rates are generally compounded and deposited to the investors account on a monthly basis. Some financial companies deposit the rates on a quarterly basis. The most effective way to get more cd rates is to compound the interest more frequently. If you compound the interest more frequently, you will be paid more at the end which ultimately results in high returns for your investments.

Promising Benefits Of Jumbo CD Accounts


It would possibly become most easiest way for you to earn good interest and get much higher cd rates for your investment.
The Jumbo certificate of deposit rates are guaranteed for your investments for every dollar more than just $ 1,00,000. This minimum balance requirement is considerably lower when compared to other high risk investments.
These deposits are insured by FDIC and hence extremely safe.
These certificates are negotiable. Banks are willing to customize the plans so as they don't lose any valuable customer like you.

Your Next Step:

If you have huge amount of money and looking for a safe investment option and get good returns for the same, then follow the steps.


Find the list of banks that offers Jumbo Certificates of Deposit Accounts.
Get the details of the rates offered by the banks.
Make a comparison of the same with other banks.
Spot the best interest rates offered by the bank and invest your money.
The details and further steps with case studies are available in the websites.




Get Started by COMPARING and FINDING >> jumbo CD rates > http://www.bestsavingsaccountrates.net/high-interest-cd-rates Balajee Kannan





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Strategic Certificate of Deposit Investments


Ever since the FOMC (Federal Open Market Committee) lowered Fed Funds to be between 0.00% and 0.25%, CD rates have steadily marched downwards. For a time, 1-year CD rates hovered in the 2.25% to 2.40%. Than it was the low 2.00% and finally most have retreated to be below 1.50%. Step-ups, Bump-ups and longer-term CDs with lower early withdrawal penalties can be a good strategy to maintain some yield with out a whole lot of term risk.

Term risk is where you purchase longer-term CDs (5-years and longer) and you run the risk of rates increasing dramatically before the term expires. This can also work in the reverse where you purchased all long-term rates and they all come due in a low rate environment. A laddered CD portfolio (which isn't the topic here) can help minimize the drastic ups and downs. I would say though that at this point rates are likely to go up at some point in the future, maybe late 4th quarter 2010 or early 1st quarter 2011. But since I don't have a crystal ball, I like the ideas of adding some "complex" CDs.

Step-ups give you a known point where your CD rate increases. In an environment such as this, you can potentially purchase a little longer-term CD, but with the steps you'll have protection against missing out on higher rates as the Fed increases Fed Funds. It is easier to find step-ups through brokers than direct. So far the shortest I've seen is around 12-years. They may have call dates where the bank can close the CD at a predetermined intervals.

Bump-ups allow you to move your rate up if the bank changes rates on the given term. So if you purchase a 3-year CD at 2.10% with a two-times bump option, you have the opportunity to move your rate up. If in 6-months the banks is offering a 2.50% for 3-years, you can move your CD rate up. Most Bump-ups don't change the term, however as always, read all of the fine print. Before purchasing these type of CDs, ask the bank for some rate change history, especially in a rising rate environment. You want to make sure you will be treated fairly.

Finally, longer-term CDs with low penalties can be a good way to boost income without taking a huge amount of term-risk. If you find a 5-year CD rate around 3.50% and it has a 6-month penalty, your equivalent rates would be 1-year at 1.77%, 2Y at 2.63%, 3Y at 2.92%, and 4Y at 3.06%. All of those are at or better than you can find for the given term. So until rates rise you get a boost in income. If rates rise slowly, you maintain that boost. And if rates go up quickly you can close your CD, move to the higher rate, and not lose much. A great find with be a 7-year or 10-year CD with a 6-month penalty. I've seen some 10-year CDs advertised at 4.00%.

So go searching and let us know what you find.




Chris Duncan is a FINRA Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Visit us at Jumbo CD Investments for Bank Certificate of Deposit info.





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HSBC Certificate of Deposit Rates - Tips to Invest


Going for an HSBC certificate of deposit is not an easy task. It is not like any other normal investment being done. You need to look into a lot of things before you make the final investment by purchasing a certificate. Certificate deposit involves a host of rules and norms and you need to go through them well before making the final planning. Remember, your money is your hard earned asset and thus you should know how to spend it or invest an amount in the wisest way. However, for this you need to ask yourself several questions and perform a wide market survey. Both are equally important.

First you need to consider your requirements in case of making an HSBC Certificate of Deposit. Do you need money on a regular basis? Then buying a certificate would not be the best choice. A certificate suffices your requirements in the long run. They are not ways of making regular cash incomes. For say you need to think of something solid for your child's education. Or you want to buy a property after 10 years. In such circumstances a certificate purchase would be just apt for you.

Such investment types do involve several risks. You have to take notice of that. It is true that no risk no gain but you need to contemplate better. You cannot just risk your hard earned cash straight away. First, you must make comparisons. You must gather all necessary information about the certificate investment plan you are going for. After you know all the details you can make a move confidently.

In what time would you require a bulk cash amount? Say after three or four years or you have the tenacity to wait for a longer time. The more you would wait the better yield the certificates would make. Moreover, an HSBC Certificate of Deposit comes with a fixed time rate. If you want to withdraw cash before time it would be a definite loss on your part. You need to keep in mind one thing - such a type of cash investment in form of certificate purchase is not for a regular source of income. These are for your better gains in future.




Next Step: Find the Latest Certificate of Deposit Rates.
Click here for the ------>>Latest CD Rates.
Click here for the latest ------>> Savings Account Rates.
Balajee Kannan





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2012年5月30日 星期三

Comparing A Money Market and a Certificate of Deposit


As investors, we all face common problems. Where can I find the best rate of return? What is a good stock to invest in? What do I do with my money in between investments? With the first two questions, limitless answers can apply. However, with the last question, there are two popular alternatives. A CD or money market account are both viable choices that should be investigated. But which one will give you the most bang for your buck?

CD's or certificates of deposit are basically like you giving the bank a loan. You give the bank a certain amount of money and they give you a certain amount of interest. The interest rate that you get is proportionate to how long the investment is. Before you ever deposit your money into a CD, you decide on how long the money will be invested. The longer you invest, the higher your interest rate will be. This is why older people are notorious for having many CD's because they simply want to keep the money they have at a reasonable interest rate.

CD's can range in time frames from a few weeks to years. It all depends on the investor. The bad thing about CD's is that you don't have access to your money. If you decide that you need to get your money out of a CD before it matures, you will probably have to pay a fine. So if you get a CD, your money is officially tied up.

The other popular choice is a money market account. This is basically like an investor's checking account. Whichever investment firm you have will take the balance from your money market account and invest it into mutual funds and other securities. With this form of investment, the rate of return is directly proportionate to how much money you have in the account. It is not linked to a certain time period as with a CD. This means that if you don't have very much money, you won't make any interest. The main benefit with these accounts is that you have access to the money at any time. Most financial institutions will give you a checkbook that you can use like you normally would. The bad thing is, many people will treat it as an actual checkbook instead of their investment money.

Whichever form of investment you choose, make sure it's the right one for you. They both have positives and negatives that you should consider, before making a choice.




Find the best CD Rates at http://www.gotalkmoney.com/





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How to Get A Better Certificate Deposit Interest Rate


One of the things you may want to consider in your quest for getting a better rate of interest may be the duration that you have in place for your certificates of deposit. Typically, the longer you can extend the duration until it is time to renew or roll them over, the better rate of interest you will be able to get from your bank. Check and see if the interest rate would substantially improve if you went with a two or three year term rather than an eighteen-month term. Of course, also make sure you can afford to have your money tied up for that length of time as well before you change anything.

Don't be afraid to check with other financial institutions in your area. While the certificate deposit interest rate you currently receive is most likely competitive, you may very well find another bank that will provide you with a slightly better rate of interest. In fact, you may be able to take this information back to your bank and see if they will match the competition. Either way, you come out with a more aggressive rate of interest to work with.

You may also want to check with nationally know banks that do not have a local presence. Often, they will be able to establish accounts for you online and in no time you can be enjoying a rate of interest with your CD's that would not be possible to obtain locally. Make sure you understand the terms and conditions that will apply, as well as the procedure you will need to follow to check on and manage your certificates of deposit online. While online, you may want to also compare what these nationally know banks can provide to the offers extended by Internet based banks. Often, you can find some very attractive deals on interest rates with the online only institutions that simply cannot be found anywhere else.

It only makes sense to find the best certificate deposit interest rate that you can. For many people, CD's are part of their overall retirement package. Making sure you are getting the best return for your money means security in the years to come. Do some comparisons today and make sure you are getting the best deal possible.




James Woodley is the writer for the website [http://interest-rates.webinfo-site.com]. Please visit for information on all things concerned with How to Get A Better Certificate Deposit Interest Rate [http://interest-rates.webinfo-site.com/Articles/Certificate_Deposit_Interest_Rate.php]





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2012年5月29日 星期二

Do You Like the Certificates of Deposit Rate


Certificates of deposit is really the investment choice of the majority. It is popularly known as CDs. Many people purchase them without any knowledge of certificates of deposit rate and how it might affect them. When you know a little bit more about the rates or what affects the rates, you can maximize the potential of this type of investment and really make it work well for you.

You need to be aware of the fact that certificates of deposits are very similar to savings account and they also have functions like one. One major difference is that certificates of deposit carries a fixed term like three months, six months, one year or even multiple years and most do also have fixed interest rate. The main idea is to leave the money in the CD or certificate of deposit for the chosen term, after which you can withdraw the money with the accrued interest.

Actually, the benefit of certificate of deposit accounts is that because of the fixed term, your interest rate is usually higher than savings account that allows withdrawal anytime. Most certificates of deposits do come with fixed rates, but some banks and credit unions also offer variable interest rates. Some CD's are tied to the stock market or even the bond market. This can be risky as far as the interest rate you get, but the payoff can be huge, depending on how the associated market does during the duration of the certificate of deposits.

Keep this options in mind if you are considering certificates of deposit:

Just so true, the larger your deposit, the higher the interest rate you can expect. Also, the longer terms will get you the highest rate. You should also know that, smaller banks and credit unions generally offer higher interest rates. Your personal CD accounts generally do get higher interest rate than business CD accounts. Some financial institution that are not insured by NCUA or the FDIC often offer higher interest rate because of the risk involved.

As you can see, when you are considering the certificates of deposit rate there is a lot that goes into it. The above rules will apply to about 99% od CD's accounts, you might find some instances where they will not. Remember, financial institutions are able to set up their own rates, so be sure to ask for better terms if you are depositing a very large sum. In some instances it makes more sense to have several CD's for smaller amounts while other times it makes sense to have larger principal amounts. Shop around and choose the certificate of deposit rate that best fits your need and is associated with a term that also fits your needs.




Looking to find the best deal on high interest rate cds, then visit my site to find the best advice on high rate certificate of deposit [http://certificatesofdepositrate.com] for you.





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Certificates of Deposit (CDs) - How Do They Compare to Other Investments?


CDs have good potential, IRA or 401k plans have better opportunities, but there is one investment that far out-weighs them all. After reading this article, you should have some understanding of the benefits each of these plans provide, and why CDs-though a solid investment strategy-could be the least in potential to all the others available.

As for the 401k options, there are 2 benefits to this plan:

1) You can commit your money to an interest bearing account before the taxes are taken from it. (This is the most beneficial to those who are in a high tax-bracket. But if you are in a low tax-bracket this feature might not be that good of an incentive.)

2) Your company may match your contributions, in most cases, up to 3%.

An IRA is similar to a 401k program except for the fact that your contributions will be after-tax only. And you will receive no company match. These plans are usually for those who do not have a 401k account available.

The benefit to this options is that once you start withdrawing the money when you retire, it is tax free because you already paid it. (If you are in a high tax bracket now, it would probably be better for you to pay the tax when you retire and you are in a lower tax bracket.)

CDs have their value in the security that they provide. But with interest rates as low as they are these days, a CD is just about the same as only not spending your money. Though the interest is better than what you could get with your regular savings account.

The best investment available can be for those who own a home or can buy a home and already have some equity in it. Why this is the best investment is for several reasons.

1) You do not need a large lump-sum of money up front, as you would with a CD to earn a significant amount of interest.

2) It is the only way you can some day-without moving back home with your parents or something similar-have a home to live in without having a mortgage or rent payment.

3) It is the only investment where you can quickly turn a liability into a saving deposit.

4) For those who do not make a large amount of money and do have a 401k plan available, owning a home can probably generate a much better retirement position than your 401k plan.




I hope you find this information helpful.





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FDIC Creates a National Certificate of Deposit Rate


Starting January 1, 2010, under capitalized banks have to set rates at or below the Weekly rates that the FDIC publishes. Search for "fdic weekly national rates" in your favorite browser for the current certificate rates.

Most frustrating is that even healthy banks are deciding to follow the rate cap. I guess they decided that if the FDIC thinks those are "good" levels they should too. Numerous banks are even setting their rates lower. There has even been rumors of pressure from bank examiners saying, healthy or not, they should not be paying rates above the cap.

I didn't really see this as the outcome the law would have, frankly. I hoped it would make it harder for the unhealthy banks to raise deposits and thus decrease potential losses to the FDIC. I see just the opposite occurring. With the many healthy banks posting lower CD rates, the unhealthy banks are still quite able to easily attract deposits.

Never the less, it is extremely disheartening to see the government stepping in so vigorously to basically regulate the certificate rates that banks offer. Another interesting note, although banks have not strayed too far from the government rates, many are still out there with high yield savings and checking account specials.

Another fascinating development: banks work around the caps with creative penalties. As an example, we have seen a few banks with 2-Year rates with a zero penalty after 1-year. That effectively allows them to use the higher 2-year rate for a 1-year CD. This just goes to show you that ingenuity can "trump" restrictions placed by the government. Also goes to show you that governmental restrictions are rarely thought out well enough and often have the opposite effect of what was hoped or intended.

Two good notes. Credit Unions are not regulated by the FDIC and thus have no rate cap. There are still a few out there posting 2% or above for 1-year CDs. Some banks have low early withdrawal penalties such as 90-Days or 180-Days for 5-year CDs. Some of the rates are well above 3.00% and if you calculate the 2-year and 3-year equivalents, well above other banks offering those terms. By the way, we can do the calculations if you ask us nicely.

In summary, the government can try to regulate rates, but banks will be as "creative" as they always are to work their way around them.




Looking for Certificate of Deposit Rates, give us a visit.

Chris Duncan is a FINRA Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Visit us at http://www.jumbocdinvestments.com.





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2012年5月28日 星期一

Top IRA Certificate of Deposit Rates - October 2009


The big player seems to be Alliant Credit Union. Believe it or not you can find CD rate specials here frequently. If you are a current member the process is much faster than trying to become a member and then completing a certificate of deposit. So even if you run out of time, I think it would be a good idea to open a membership. The hardest thing is Alliiant won't lock the rate beyond the current day. So if you put the IRA process into gear and the rate drops, your out of luck. Anyone can become a member by first joining the National PTA. This is $25, I believe. You then can complete the Alliant member application. Be forewarned that their online process has proven difficult for many in the past. It asks a series of questions about information it pulls from the credit bureaus and I've known several people that claimed the information was erroneous and thus they couldn't complete it online. You can always go the route of snail mail if necessary. The current IRA rates are:

1y -- 2.30% APY

2Y -- 2.55% APY

3Y -- 3.00% APY

5Y -- 3.25% APY

Their NCUA# is 67955 and they are based in the windy city of Chicago, IL. They are large for a credit union with over $6 Billion in assets. As of March 2009 data, they have a 4-star rating.

Another big player is Ally Bank, but they don't offer rates for IRA CDs. People's Trust Federal Credit Union has an 18-month IRA for 2.12% APY. They are based in Houston, TX. They have a 2-star rating. People's NCUA # is 177. Looks like they have been around for a while. I did have to make quite a few clicks to get to the rates. I hate that. This is true for many banks and credit unions. They really should make it much easier.

If you're wanting to stick with a bank try Nationwide Bank, FDIC# 34710. Their process isn't too difficult. They are about $2.25 Billion in assets, had a nice second quarter profit, and 4.5 stars. Rates are:

1Y -- 1.95% APY

2Y -- 2.35% APY

2Y -- 2.25% APY

3Y -- 2.45% APY

I think that is a pretty good window into IRA rates across the internet. Let me know what you are finding.

Happy Investing.

cd :O)




Chris Duncan is a NASD Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Check out our CD Rates offers or our California CD rates





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Certificates of Deposit (CDs) - How to Protect Your Financial Wealth


Certificates of Deposit (CDs) are a popular form of financial investments these days because they are considered to be more safe than many other types of savings and investments. It's important to have a good understanding of this type of investment to protect your financial safety and wealth. It's also important for you to ask questions of the bank. Disclaimer: This info and the tips are not intended to be comprehensive...that would take a book.

What You Want to Understand

1. Certificates of Deposit at banks are insured up to $250,000 by the FDIC government agency. Know that the government has a very small percentage placed in reserve to fund these losses. The government reserve fund was only 1 to 2% of the total dollars invested in CDs, last time I checked. And it's likely no more than that these days. Other agencies like brokerage houses, may be insured in other ways, like SIPC.

Policy: Make sure you limit your investment in each bank to maximum of $250,000, to have the best protection. Verify if the $250,000 is per person or per family or corporate entity.

2. CDs offer many choices for your investment dollars:

Varying lengths of time (3 months to 5 years) until maturity, each term with a different interest rate.

Each bank will have different CD choices, so you likely need to contact them to see where you get the best rates, terms and other factors to meet your needs.

These days banks (and also other investment entities like credit unions) offer special deals to attract investment capital for their coffers, hopefully to lend to businesses, home owners and others. These specials yield the best results many times in interest rates and terms.

3. Find out about potential penalties and fees.

Are there any penalties and fees or fines, if you need to withdraw some of the money from the CD before it matures? This is very important because you want the money earning interest every day, however an emergency can arise that requires you to make a partial withdrawal of the principal of the CD and you want to know what that would cost you in real dollars.

What are the penalties and fees? Here's what I found, I'll use an example of $20,000 CD. Each bank varies, so I called banks for the information. The 2 scenarios illustrate

Bank 1: Any partial withdrawal before the maturity date of the CD results in a 3 month, 6-month or 1 year penalty, depending upon the term of the CD (12 month to 5-years). The penalty: your interest earnings on the entire $20k CD for the 3, 6, or 12 months penalty period are taken away, for taking out any principal amount, even $1,000 or whatever small amount. That's a huge loss.

Bank 2: Partial withdrawals (may be a limit to 1 or 2) are allowed, with a penalty for the early withdrawal. Penalty: of 3 or 6 months only on the partial amount withdrawn. The rest continues to earn interest until the CD matures, and at the rate in the original CD document. Nice.

Most banks will automatically roll over the CD to another like-term CD if you do not redeem it within 10 days or so after it matures. You should get a notice in the mail a week or two before the maturity date, but don't rely on that. Keep track of maturity dates yourself to insure you know what's going on.

4. Ask questions and make requests of the bank in situations where errors or misunderstandings occur with CDs or other bank transactions.

When a CD has automatically rolled over in error or even if you just forgot, but you don't want it rolled over with the original terms and the new current interest rate. Ask the bank to make a special exception to reverse the rollover. Also request they include the interest earned on the new CD. A courteous and respectful, occasional request for a valid reason works. I've done this a couple times over many years.

There are other examples. The point is this: take an active role in your finances, manage them, ask questions until you understand situations. The bank and all financial agencies are there to serve you - within ethical, honest, and legal parameters.

5. CD Investments on the Internet.

Be cautious with investing on the internet in CDs or any other investments. During this economic downturn people can feel desperate, so they turn to places they may see higher interest rates. The scams and frauds are higher during these times. My recommendation is to stay away from the internet for your investments now, unless you are very familiar with the source, have used them previously, and believe you can trust them.

Protect your wealth, manage your wealth wisely. Your future is in your hands!




Barbara Filla, Successful Entrepreneur and Financial Expert, helps many become the next success story. Whether you're looking to develop and build a successful business, be an ex-corporate CEO of your own home-based business, the next millionaire Mom or Dad, Barbara can assist you to reach those goals and experience more happiness, success and wealth.

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CD (Certificate of Deposit) Accounts


Certificate of Deposit accounts are a an extremely safe situation for you to deposit your money. Educating yourself about CDs is a benefit to you if you want to keep your money safe and sound.

On one hand there are a couple of facts that you need to know about a CD from the onset. One is; they force you to leave your funds in the bank for a particular amount of time. In addition, they commonly have a higher interest rate than savings accounts.

Most banks want all of your money deposited with them. If they are not offering a good rate after you've shopped around, speak with an area manager. Sometimes to keep your money with them, they will make an exception. If not, move your money.

As you are about to open your CD Account, you will be given an option: length of time you want to 'tie' up your money. Remember, you are agreeing to leave your money in the CD for a certain period. This can be anywhere from 7 days to 7 years or more.

The rationale banks use; if you assign them your money to have and you assure not take it out before the end of the term, they can take that money and invest it. This makes them a bundle of money. So, they are willing to pay you a high interest so that you will choose to leave your money with them for a long time.

An addition to leaving your money for a certain term, there will also be a minimum amount to open your CD. Unlike a savings account, you can not add to it. You can expect some minimum amounts to open an account like this can be as much as $1,000.

An additional fact to find out is how your bank pays interest. Is is simple or compounded? Compounded means you are getting interest on interest plus principle. How often does your bank pay. Monthly, quarterly?

Many banks will offer you the opportunity of having the interest deposited into another account, such as your checking, but if you are trying to make and save money this isn't recommended. If you let the interest accumulate, you can wind up with a substantial amount after the term is up.

Also, keep in mind if you withdraw your interest along the way, you now have a different interest rate. If you leave it, it is annual percentage yield. If you keep withdrawing interest, this will affect the Annual Percentage Yield for the CD. Talk to your banker or accountant about this.

Once the agreed upon time frame is up, the money plus interest (if you did not take it out) is now yours to do whatever you want with. However, there is a 'grace' period after maturity, usually 7 days. So after the CD matures you have a certain amount of time to go to the bank and get your money. If you don't, the CD will renew itself. If you try to get it after it renews itself after the 'grace' period, you will be penalized.

CD (Certificate of Deposit Accounts)

Retirement USA provides complete solutions for your lifestyle Certificate Of Deposit Accounts




Ric Dalberri is a graduate of Columbia State University & has been involved in his own business (sold) employing over 100 people. Ric was also a top producer as a Financial Specialist for over a decade with one of the largest financial institutions in the U.S.
Ric is the founder of Retirement USA which provides complete solutions for your lifestyle. Please visit and sign up for the free newsletter.





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2012年5月27日 星期日

Best Certificate of Deposit Interest Rates - May 2010


We have seen certificate rates decreasing more and more again this month. Healthy banks are averaging below 1.25% for 1-year CDs. Banks showing distress are still popping in around 1.50%. A little bird told us about a bank in Puerto Rico offering a 2.25%, but only for local credit unions. Sooner or later rates have to go up, but it keeps leaning more and more towards later.

1-Year CDs

Northpointe Bank has a 2.05%. But it doesn't come without a catch. In reality, they have a 2-year CD with no penalty to close after 1-year. But a liquid CD after 1-year is a good feature. Bank does have some weakness though. Alliant Credit Union has a 1.75%. We've listed their rates previously. They have a 3 to 4 star rating depending on whom you ask.

18-Month CDs

Two institutions have a 2.00%. They are Alliant Credit Union and First City Bank of Florida. First City has a 1-star rating. Aurora Bank FSB (formerly Lehman Brothers Bank) has a 1.78%. They have a 2-star to 3-star rating. And like Ally Bank (formerly GMAC Bank) they are trying to leave their past behind them.

2-Year CDs

We have a bank with a 2.50%. They are 3 to 4 star rated. Alliant has a 2Y at 2.25%. Alliant came on the scene a few years ago and has continued to keep their rates quite competitive. And of course as I mentioned above, Northpointe has a 2.05%.

3-Year CDs

First Federal Bank of the Midwest has a 37-month at 2.75%. They have a 4-star rating. Alliant Credit Union comes in second with a 2.50%. Pentagon Federal Credit Union also has a 3-year at 2.50%. They have a 4-star rating.

5-Year CDs

Acacia Federal Savings Bank has a 3.20%. They have a 2-star rating. Nationwide Bank has a 3.10% and only a 6-month penalty to close. Ally Bank is supposed to have a 60-Day penalty and their rate is 2.99%. At least they could have made it an even 3.00%.

All reported banks are FDIC insured and the credit unions are NCUA insured. Please remember that although we strive for accuracy mistakes can be made. Please verify federal insurance, rates, and ratings with any institution you are looking to make deposits with.




Chris Duncan is a FINRA Registered Representative. He works for Jumbo CD Investments, Inc., a leading CD research and placement firm. He specializes in helping clients find the highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Visit us for Great CD Rates

Other Rate Source: Michigan CD Rates





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2012年5月26日 星期六

Protecting Interest Earned on Certificates of Deposits


Are the best CD rates variable or fixed, and what can be done to protect certificates of deposits from changes in rates?

Certificates of deposits are often considered some of the safest investments available. With rates offering higher returns than a savings account, and the best rates competitive with treasury bonds, they are also a good way to ensure a return. But when Cd rates change, it is possible to lose these returns. This is why it is important to be smart about choosing the best CD rates and terms if you choose to invest in them.

How Certificates of Deposits Set Interest

Traditionally, CD rates were always fixed. Today, some of the best CD rates are variable. A fixed interest CD is exactly what it sounds like. The rates do not change until the maturity date, after which it stops earning interest and the investor can withdraw their money without facing penalties. When it comes to variable rates, the situation is somewhat more complicated. A variable rate on certificates of deposits changes, but you will have to do your research to determine exactly how. In some cases, the interest rate may be tied to the value of treasury bonds, or to a financial indicator like the Dow Jones. In other cases, the interest rate changes on a set schedule.

Are the Best CD rates Fixed or Variable?

The answer to this question depends on the situation. One or the other might have the best rate in the beginning, but since variable interest changes, by definition, the situation can reverse itself. Under circumstances where the variable rate is based on economic indicators, a variable rate is good if the economy is expected to improve, and bad if the economy is expected to take a downturn.




Certificates of deposits with a fixed rate might be though of as the opposite. Since the interest rate is "locked in," there will be no loss of interest if the economy gets worse. On the other hand, the interest rate will not improve if the economy improves.

Stacey Nelson





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Educate Yourself on Bank Certificate of Deposits


In the light of all the market turmoil that has ravaged countless individuals' retirement nest eggs and other investments in the last several years, many people have begun looking for other investments that feature less risk. A person looking for the safest investment that offers higher returns should consider a certificate of deposit.

About Certificates of Deposits

Certificates of deposits are both safe and reliable investments for investors looking for a slightly larger rate of return than a savings account and the safety of almost no loss to principle. Over the years, the various types of CDs offered has grown considerably. This has made it a little confusing to determine which one is best for a particular individual's scenario. Two popular types of CDs are callable and jumbo CDs.

Many people like to shop for the most advantageous certificate of deposit available to them by the CD's annual percentage yield (APY). This is an important means of comparing what CDs actually pay investors. Annual percentage yields can be used to compare and contrast two different CDs that possess the identical maturity date but provide different means of paying their interest, quarterly versus semi-annual, for example. APY takes into account how frequently the bank pays the interest on an investor's particular certificate of deposit. If a CD offers more often interest payments, then the return and APY is actually increased.

Callable Bank Certificates of Deposit

Many certificate of deposits investors will not be familiar with the concept of a callable CD. Callable certificates of deposit can literally be taken away from a CD owner following the expiration of the call protection timeframe. This would be done in advance of the CDs maturity..As an example, a five year CD that included a six month timeframe call protection could only be taken, or called, away following the conclusion of the first six months of ownership.

Banks like to offer such callable certificates of deposit as the risk of a dropping interest rate is then shifted to the buyer of the CD who made the deposit in the first place. In exchange for accepting this callable nature that creates a risk of losing the interest rate, callable certificates of deposit come with slightly higher yields than identical maturity date certificates of deposit that are not callable. This extra yield is a part of the compensation for the buyer being willing to take on the risk of losing a locked in interest rate.

Banks use callable CDs to manage their exposure to interest rates when they sell such CDs. To come up with the rates that they are willing to pay a holder of a callable CD, they use complicated option pricing models. This allows them to come up with an appropriate reward to offer the buyer who helps them to balance their interest paying deposits against their loans that they make. The bank is only hedging its risk with these types of CDs.




Hank Coleman is the founder of several financial blogs, focusing on topics such as how to find the best certificate of deposit rates and other profitable investing opportunities. He is an entrepreneur and professional in the government sector. Hank holds a Bachelor's degree in Business Administration, a Master's in Finance, and is currently studying for his Certified Financial Planning (CFP) credentials. Always looking for a trusted financial institution for advice and tips he tends to look up information at http://www.discoverbank.com more often than not.





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2012年5月25日 星期五

Looking For a Safe Investment? Try a Certificate of Deposit


If you are looking for a safe investment and you have between $100 -$1,000 to invest, you should consider a certificate of deposit or CD. When purchased through a bank, CD's are federally insured up to $100,000.

When you invest in a certificate of deposit, you are lending your money to the bank for a set period of time at a fixed rate of interest. At the end of that time period, the bank pays you back your investment with the interest you've earned. The annual interest earned is reflected by the annual percentage yield or APY.

There are several details to consider before investing in a CD. First, find out when the CD will mature? Banks offer certificates of deposit with maturities ranging from 3-months to 10-years or more. Figure out how much to safely invest and how long you feel you can leave that money alone so that it earns interest. Also, make sure you get the maturity date in writing.

Second, you'll want to know the annual percentage rate (APR) you'll earn on your investment. Investing larger sums for longer terms usually earns the best interest. However, even a small investment can earn you higher interest than a traditional passbook savings account.

Next, find out how the interest is compounded - daily, monthly, or annually? Daily compounding is best because it earns you more interest. You can shop for the best CD rates at http://www.bankrate.com or check with your personal banker.

Shopping on the internet, I found rates for a $1,000 1-year CD in my local area ranging from 2.96 to 3.97 APR and a 3.00 to 4.05 APY respectively. So if I invested $1,000 at 2.96 APR, at the end of 12 months I'd get paid $1,030.00 by the bank (figures computed with interest compounded monthly). That same $1,000 invested at a rate of 3.97 APR would return $1040.43.

Interest rates are usually locked in for the term of the CD, although some banks allow you to take advantage of higher interest rates by converting your CD. This type of CD is called a "step up" CD. Generally, banks will only let you "step up" once during the term of the CD.

What happens if you withdraw your money before the certificate of deposit matures? Your bank will impose an early withdrawal penalty, which can vary depending upon the maturity date and the amount invested. It's important to invest only money you can truly afford to leave alone for the term of the CD.

As with any investment, make sure you understand all the terms, fees, and any penalties before you purchase.

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Author: James H. Dimmitt




James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book ?IDENTITY THEFT- How To Avoid Becoming the Next Victim!? and other money-saving bonuses by visiting http://www.yourfreecreditreportnow.com





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What is a Certificate of Deposit?


A certificate of deposit is a savings instrument similar to savings accounts, stocks and bonds and is usually available from any bank or credit union. They differ from savings accounts in that a lump sum of money is deposited into the certificate, also called a CD, and the money is held in the account collecting interest. CDs have different interest rates and terms, or length of time the money must stay in the CD to collect interest. Deposit and withdrawals are usually locked for the entire life of the CD, with the owner of the CD barred from adding or removing funds from the CD for the term of the instrument.

CDs are generally offered in several different terms and interest rates. Most are available in terms ranging from a few months to several years. Normally the higher the interest rate available, the longer the money must stay in the CD. One of the main differences between CDs and other money investing techniques is all the money in the CD is returned to the depositor when the term of the CD is completed. Unlike stocks or bonds, which can gain or lose money, CDs collect interest and are not invested in any other instruments.

Certificates of deposit are available from any bank or credit union and different institutions will have different options to choose from. A smart CD shopper should always shop for the best rate and a term that agrees with their investment style. Those looking to invest in CDs should always be aware of any penalties for early withdrawal of funds and have a plan on what to do with the money when the term of the CD is over. Most investors role over the money in a CD, once the term is met, into another CD with a higher rate. The interest earned on a CD can be paid to the depositor as soon as it is earned on the money deposited, or it can be rolled into the principle of the CD. All the funds, including interest, can be rolled into a new CD once the investment term is completed.




For more information on CD Rates [http://Rates.cd] visit [http://www.rates.cd].





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2012年5月24日 星期四

Certificates of Deposit


Banking is when you are in the business of saving or keeping money for savings or checking accounts or for exchange or for issuing loans and credits. You do transactions in a bank, either depositing or withdrawing or getting a loan. Banks make their money transactions easier and at the same time profitable. One of a number of banking transactions is the Certificate of Deposit. What is a Certificate of Deposit?

When you go to a bank, make sure you know the products they are offering you. One way of keeping your money and gain savings is through CD. What is a Certificate of Deposit? A Certificate of Deposit or CD is a time deposit. Withdrawing money before maturity will incur penalty. Most individuals will have to ask what a CD is. It is generally issued by commercial banks and insured by FDIC bearing a specified fixed interest rate and can be issued in any form of denomination. The term would normally range from one month to five years.

What is a Certificate of Deposit? It's different from a regular savings account in that the CD has a specific, fixed term, and usually has a fixed interest rate. It is specifically intended to be held until maturity, at which, by that time, may be withdrawn together with the accumulated interest. Savings accounts can be withdrawn and have lesser interest. CDs have higher interest rates as compared to a regular savings account.

After knowing what a certificate of deposit is, another question is how we acquire such. CDs require a minimum amount of deposit. Higher principal would get a higher rate. Being aware on what is a certificate of deposit would give you a clearer scope on its benefits and what you can earn. Upon opening a CD, a passbook or a paper certificate will be issued. Most banking institutions have arrangements with their customers to have their interest mailed as a check or transferred into their checking or savings account from time to time.

Another feature on what is a certificate of deposit is when you close it. Closing it before maturity will lead to penalty rate. When a CD nears its maturity date, the holder will receive a mail notification. You can also do "rolling it over" or once again tying it up for another period of time, otherwise, the holder may cash it upon maturity.

It's always best you know what is a certificate of deposit and know its features before you get to avail of its product. If you have not much use of your money, better invest in CD. You can save and at the same time earn interest over a period of time.




Ian Pennington is an accomplished niche website developer and author.

To learn more about certificates of deposit [http://bestcdinvestment.info/what-is-a-certificate-of-deposit], please visit Best CD Investment [http://bestcdinvestment.info] for current articles and discussions.





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Certificate of Deposit - Know the Facts About Making Money


A certificate of deposit better known as a CD is a deposit made based on time. It is a very common product that is offered to customers of credit unions and banks.

CD'S are act similar to a savings account because you are considered to be risk free because a CD is insured by the FDIC. There are some differences in savings accounts and CD'S such as a set term for maturity. The CD will have a fixed term such as 3-12 months and also will have a fixed interest rate. The reason is that for you to get the full maturity you must hold it the allotted time. At the time of maturity you will be able to withdrawal the principle amount plus the interest that has accrued.

What a financial institution does is it will give you a higher rate for agreeing for a longer term. This differs from a savings account which generally gives you a lower rate because you have instant access to that money.

Most CD'S have only fixed rates but in some cases you will see banks offering a bump up rate which will be adjustable. If you get into a situation were the interest rate is on the rise then you get into a CD that will allow you a one time adjustment.

It is good to know that there are some things you must know about interest rates. In general if you have a larger amount to deposit then you will get a higher interest rate. If you have a longer term then you can also get a higher rate over the length of the CD. If you find a smaller bank a lot of times they will offer a higher rate to attract new customers.

Basically how a CD works is you need to decide on how much you are going to deposit then when you go to the bank you make your deposit. You will then receive a book that will have the deposit amount and rate on it. You will receive periodic statements so that you know how much interest you have earned.

You can also have the interest made on the CD paid to you on a monthly basis but be aware that you will not benefit form compounding interest. Also CD'S usually have a minimum amount that they require to deposit.

If you do not cash out your CD at the end of the term then usually the bank will roll it over for another term that was the same as before




Find Free: CD Help Now

You Can: Find Best Rate

Bryan Burbank is an expert in the field of Finance and Loans.





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Earn a Risk Free Return With a Certificate of Deposit


Are you tired of the ups and downs in the stock market? Do you want to lock in a safe return for a designated period of time? A Certificate of Deposit is the best financial product to meet this goal for you.

A certificate of deposit is an investment vehicle that generates a virtually risk-free return on your investment. You agree to give the financial institution access to your funds for a certain period of time ranging from 3 months to 10 years. In return you receive a guaranteed return during that time frame.

Financial institutions are willing to give you this guaranteed return because they can generate higher returns lending your deposited funds in consumer and business loans. You get the agreed upon Annual Percentage Yield (APY) from the Certificate of Deposit, and if you invest wisely you don't have to worry about risk.

CDs can be risk free - Why take on additional risk?

That's right. When you invest your money into a CD it can be a risk-free investment if you are smart about how you're investing.

How are CDs risk free? The Federal Deposit Insurance Corporation (FDIC) offers deposit insurance on your total deposits at member financial institutions. FDIC insurance applies to deposit products including Money Market accounts, and Certificates of Deposits, up to $250,000.

If the bank fails and you're under the insurance cap then you won't lose any of your money, but some or all amounts over the deposit limit may not be recovered.

CD rates beat savings account rates - Make your money work harder

The national average for interest rates on saving accounts is 0.20% (at the time this article was published). This is a fraction of the returns that can be earned in other investment vehicles.

CD rates are typically higher and higher rates mean more interest earned for you. Even if you open a CD for only three months at 0.60% you're still earning triple what you would in an average savings account.

Use CD ladders - earn higher returns and enjoy liquidity, too

Despite the fact that savings accounts don't pay a lot in interest many people continue to use them because they want to have access to their money in a pinch. The fear of not being able to get to their cash keeps them from earning higher returns.

While it is true that you lock up your money in a CD for a period of time you can take steps to avoid a liquidity issue by utilizing a CD ladder.

To set up a CD ladder all you have to do is open a set of CDs that have different durations that divide well into each other.

For example, let's say you have $10,000 you want to put into CDs, but you don't want to put all of it into a 1-year CD. Instead you split the money into four different CDs: a three month, a six month, a nine month, and a twelve month. After three months your first CD will mature with $2,500 (plus interest earned). You roll that money into a new 12 month CD. After another three months your original six month CD will mature with another $2,500 (plus interest earned). You roll that money into a 12-month CD.

If you continue this process your CDs will be effectively "laddered", you'll earn higher interest rates, and you won't be without access to 25% of the funds for more than three months at a time.

If a 24 month Certificate of Deposit earns a 1.60% annual interest and a 24-month CD at another bank is only 0.74%, you can easily double the interest you earn over what the national average rate earns by selecting the best rate available.




Kevin Mulligan is a freelance writer on personal finance topics including retirement planning, finding competitive Certificate of Deposit rates, and paying down debt. Kevin holds a Bachelor's degree in Business Management. He has a passion for showing individuals how to budget and live a debt free lifestyle. Always looking for financial tips and advice from trusted institutions, he tends to look up information at http://www.discoverbank.com/ on a regular basis.





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2012年5月23日 星期三

Certificates of Deposit, What are Certificates of Deposit or CD's?


Much has been written lately about the subject of Certificates of Deposit. A certificate of deposit is a very powerful investment tool but, some are kept away because it all seems a bit to good to be true.

What are Certificates of Deposit? In simplified terms a CD is a savings certificate entitling the bearer to receive interest.

Let's start with the certificate of deposit definition from the growing resource Wikipedia: What is a certificate of deposit? - http://en.wikipedia.org/wiki/Certificate_of_deposit

The definition provided by Wikipedia is a good place for you to start, but let me just add to the information a little. If you have a large sum of money you have been hanging on to, perhaps waiting for the economy to improve or the stock market to settle down then CD's may be a good option for you.

Whatever you do don't limit yourself to your local bank. Explore the rates offered offshore and you may find the CD interest rates considerably higher than in your state or country, the Swiss Trust Bank http://www.swisstrustbank.com/CD_rates.html in St. Vincent and the Grenadines would be a good place to start as they offer some of the most generous rates available, with some off their CD's offered at an amazing interest rate of 8.5% per annum. Investors searching for relatively low-risk investments that can easily be converted into cash often turn to certificates of deposit (CDs). A CD is a special type of deposit account with a bank or thrift institution that typically offers a higher rate of interest than a regular savings account.

CD Basics

Here's how CDs work: When you purchase a CD, you invest a fixed sum of money for fixed period of time - six months, one year, five years, or more - and, in exchange, the issuing bank pays you interest, typically at regular intervals. When you cash in or redeem your CD, you receive the money you originally invested plus any accrued interest. But if you redeem your CD before it matures, you may have to pay an "early withdrawal" penalty or forfeit a portion of the interest you earned.

CD's are the simplest form of financial instruments in which to invest. With certificates of deposit you get a guaranteed rate for a fixed term, for the minimum amount of form filling. Normally a bank would require an application form, copy of passport, bank reference, and source of funds documentation. A CD is issued to the client giving the amount, the interest rate and the term.

As soon as the funds are sent to the offshore bank, they are immediately put into an investment programme, for the term of the deposit. Hence funds paid into a CD are irredeemable until due for payment, at these higher interest rates.

It is important to choose an offshore bank of some quality, such as Swiss Trust Bank in the Caribbean. As part of the Swiss Trust Group which has an excellent investment record since 1960, Swiss Trust Bank has been able to benefit from being part of this group.

This article is not meant to explain CD's in great detail, there are many ways to accomplish this step when you determine what your savings needs are. However if you wish to make it really easy for yourself you can download the forms you need here http://www.swisstrustbank.com/forms.html and call on (1) 784 458 2400 (EST) ask for David Morgan and I will guide you through the process so its really easy for you.




The Author of this article David Morgan is the General Manager of Swiss Trust Bank and has over 20 yrs experience in the banking and financial world. You have permission to syndicate this article providing you the link it to http://www.swisstrustbank.com.





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Advantages of Buying Certificates of Deposits


There are many reasons that the advantages of certificates of deposits are compelling. In today's market and economic situation, those reasons only get better. The advantages of a CD are many and long gone are the days when only farmers wanting to stash their money until they purchase their spring seeds utilized the certificate of deposit advantages.

Today's financial markets have two types of investors: the instant gratification junkies and the long term investors. The instant gratification types have little interest in anything other than very short term certificates of deposit and often use them merely as a way to store money while they wait out a maturity on something else.

For the serious, longer-term thinker, however, the advantages of a CD are immense. Since certificates offer a fixed interest rate for a set time period, they make it easy to plan ahead and give a virtual guarantee of payoff. Unless the bank fails, the money will be there (with interest). Even with bank failures, your initial deposit won't be lost thanks to FDIC insurance.

Rates on savings and other variable interest are constantly in turmoil: changing regularly, going up and down without warning. One of the biggest certificate of deposit advantages is that lack of turmoil and change. For a 5-year CD term, for instance, you are guaranteed that interest rate over that five years, no matter what the market's doing.

Currently, another of the advantages of certificates of deposits are those same interest numbers. High yield accounts such as money market savings accounts are not competing well with CDs. For the person who thinks in terms of 1, 3, and 5 years ahead, only the advantages of a CD can deliver real and stable returns.

Many IRA, mutual fund, and other investors will utilize the stability of certificate of deposit advantages as a base line for their portfolios.

So consider the advantages of certificates of deposits when you look towards your next long-term financial goal, be it 6 months or 6 years from now.




If you always want to know where to find the best CD rates, check out bank CD rates. If you are interested in other types of banking rates, check out bank rates.





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Certificate of Deposit - An Old Favorite


Certificates of Deposit might be the safest investment vehicles out there and in the volatile market of early 2009, this old favorite might be the best investment for today. What is it? A CD is basically your assurance that a bank will be able to use your money for a specified period of time. Just as you pay the bank back on their money with interest (a mortgage or car loan for example) they do the same for you with a CD.

What are the advantages of a CD? First, they are safe. If you have money and you know you are going to need it and can't afford to have any risk attached to it, get a CD. Next, they are easy to set up. It's as easy as shopping around for the best deal at an institution you trust and signing up. If you can open a savings account, you can open a CD. You also don't have to be a financial genius to make money on a CD. There aren't many different types (other than the length and amount of money invested.)

What are the disadvantages of a Certificate of Deposit? Remember that the safer the investment, the less money it will pay you. You don't get a lot safer than a CD so don't look to get rich unless you are rich already. At the time of this article, CDs are paying between 2% and 4% on average. Contrast that with a savings account and you will earn an average of 1.98% as of today. In order to get value from a CD, you need a fair amount of money and more importantly, you have to put it in to a long range CD. 5 year CDs can earn you close to 4% but that's a long time for the average person to have money tied up. On a related topic, I've answered this question a couple of times lately and then heard it on a radio talk show just the other day:

"I just received a large sum of money from an inheritance. I don't know anything about investing so I want something safe where I can leave it alone."

My answer to that: I call it stacked CDs.

Take the entire amount and divide it up. Let's so you have $50,000. Divide it in groups of $10,000 and put it in to a 1yr, 2yr, 3yr, 4yr and 5yr CD. This way you have 10K available to you in one year. If you don't need it, buy another 5yr CD with it and keep turning it over like that. As markets improve, you may want to talk to a financial advisor about slightly more aggressive ways to invest your money but don't forget about the Certificate of Deposit as a safe way to make a little bit of money during a less than positive economy.

In today's economy, don't forget about the CD. It isn't the most exciting investment vehicles out there but exciting almost always means volatile. Make sure to balance risk versus reward.




Tim is the author of http://www.elementary-finance.com, a financial blog providing beginning investment and finance advice to those who have a desire to learn the basics of investing and finance.





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2012年5月22日 星期二

CD Rates - Finding the Best Deal on Certificates of Deposits


Get the best CD rates possible, but avoid missing out on future investment opportunities.

Certificates of deposits are one of the safest ways to invest your money for the future, much like a Treasury bond. Cd rates offer some of the highest rates of return that you can receive as an individual without risking any losses. Since they are insured by the FDIC by up to $250,000, there are virtually no risks. Still, it is worth your time to look for the best CD rates available, in order to get the most for your money.

Check Online

Some of the best rates can be found through online banks. Certificates of deposits offered by online banks often earn a higher interest rate due to the fact that the bank has fewer operational costs. There are also several different online marketplaces that you can take advantage of in order to find the best deals available.

Brokerage Firms

While CD rates offered by the bank can often be quite competitive, it is often possible to do even better by getting in touch with a brokerage firm. Financial advisers can often gain access to brokered CDs. These often offer the best CD rates available. This is because of the fact that the brokerage firm can offer access to a very large number of certificates of deposits, which allows them to negotiate better rates.

Check for Local Promotions

In many cases, a small local bank will end up in a situation where a large number of deposits are required. When this happens, a bank will often have a "sale" on certificates of deposits. This means that they will offer them with higher interest rates that usual, giving you a better return on your investment.

Consider the Term

The longer the term of the certificate of deposit, the higher the interest rate generally is.




The best CD rates are almost always offered on longer-term CDs. It is important to pay close attention to the economy when considering whether or not to invest, however. Rates can change rapidly, and if the economy is expected to improve in the near future, a good rate now could be a bad rate tomorrow.

Stacey Nelson





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Certificate of Deposit (CD) Rates: Why Are They So Low?


Certificate of deposit (CD) rates have been extremely low since the latest recession. In fact, just 3 years ago in 2008, rates were near the 5% range. Now, you are lucky to find a rate above 1.25%. So will the rates ever increase? Are we doomed to low returns on our deposit accounts?

Why CD Rates Are So Low Now

When a bank or other financial institution offers a deposit account, the rates will typically be set to reflect the current rates from the treasury. What this typically means is this: When treasury rates are low--then cd rates are going to be low. When treasury rates are high--then CD rates are typically going to be higher as well.

When the economy collapsed in the recent recession, the treasury rates also were lowered signficantly. Thus, nearly all deposit accounts (savings, CDs, checking accounts, etc.), also experienced a sharp reduction in rates.

Of course, this is great news if you wanted to refinance, or if you wanted to get approved for a low-interest loan. In fact, I was able to lock in a very low rate for my first mortgage during this period. But if you were hoping to get a solid return on your deposit accounts--it just didn't happen.

When Will Certificate of Deposit Rates Go Up?

Since CD rates are tied so closely to the treasury rates, you can expect that they should increase when the economy rebounds. Unfortunately, in 2011, some fear we may hit a double recession. Should this happen, then deposit rates may indeed stay low for the next few months or even years.

If, however, the economy begins to recover, then the interest offerings should increase along with it. This would be great news for retirees and others who rely on interest income to pay their living expenses.

How to Know When Interest Rates Increase

If you are wanting to invest in a CD, then the best way to know about rates is to find a great site that monitors rates. There is always natural fluctuations in interest, but generally speaking, it is often easy to spot a trend of increasing or decreasing interest offerings. So it can pay to shop around online (literally) before investing.

Also, don't forget to check the local banks or credit unions as well. Sometimes you can nab even higher rates as compared to larger banks. So make sure to call or drop by your local financial institutions while you are shopping around.




Do you want to learn more about investing in CDs? If so, then I'd like to invite you to my website. You can sort through a collection of articles related to investing, and also learn more tips when opening certificate of deposit accounts.





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2012年5月21日 星期一

Certificates of Deposit - What is it?


Commonly referred to as a CD, a Certificate of Deposit can be used as a short or long term investment. Domestic banks offer FDIC (Federal Deposit Insurance Corporation) insured Certificates of Deposit with higher rates of return than other investment options. The bank retains money for a specified period of time with the promise to repay the principal and interest to the depositor at the conclusion of the investment term.

Depending on the amount of money you invest, and the particular terms of the bank you choose to invest with, you may choose to invest your money for a period as short as one month to six years. There is usually a penalty for withdrawing money from a CD prior to the maturity date. Banks will also require a minimum deposit to open a Certificate of Deposit.

OFFSHORE CERTIFICATES OF DEPOSIT

International Certificates of Deposit vary slightly from domestic CDs. International Certificates of Deposit can also be referred to as Offshore Certificates of Deposit or Eurodollar Certificates of Deposit. When obtaining a Certificate of Deposit from an offshore bank, the investor signs an agreement with the bank in which the bank agrees to pay a fixed interest rate in exchange to use the money during the specified time period.

Similar to domestic banks, offshore banks will differ on the minimum amount required to use as a deposit for a CD. Often the amount required for an Offshore Certificate of Deposit will be much higher than what is traditionally required from domestic banks.

There are several advantages to having a Certificate of Deposit from an offshore bank. The advantages include:

1. Higher interest rates. Unlike domestic banks, offshore banks are not government regulated and are free to compete against each other for better rates. Depending on the country you choose to bank in, interest rates can be as high as ten percent.

2. Another advantage to having an Offshore Certificate of Deposit is the income tax benefits. If you choose to open a Certificate of Deposit in a recognized tax haven such as Panama, you will not be taxed on interest earned because that particular government does not impose interest on income taxes.

3. A third major advantage to an Offshore Certificate of Deposit is the anonymity and confidentiality offered to protect your assets. Depending on the jurisdiction you choose to obtain your Certificate of Deposit, the bank may be forced to adhere to strict secrecy laws which protect your money from creditors and divorce. Also, since offshore banks are outside the jurisdiction of domestic courts those wishing to sequester your funds for whatever reason will be unable to do so.

INSURANCE ON OFFSHORE BANK ACCOUNT CD

Unlike domestic banks, an offshore bank cannot offer Certificates of Deposit which are FDIC insured. Rather, these banks have their own methods of insuring investment money which guarantee that at any given time the bank has enough money in its reserves to cover all deposits made.

For example, in Panama all banks are required to report each month to the BNP (Banco Nacional do Panama) to ensure they have enough reserves to cover deposits made. Compliance officers are assigned to the banks to make sure depositor's funds are not misappropriated. Additionally, offshore banks will often maintain large insurance policies to cover depositor's funds for amounts over what is normally covered by the BNP.

EURODOLLAR CERTIFICATES OF DEPOSIT

Eurodollar Certificates of Deposit are issued in London according to the rates listed on the London Interbank Offered Rate (LIBOR). This interest rate is calculated on a daily basis by the British Banker's Association. Several countries that rely on LIBOR for calculating the rates for Certificates of Deposit are England, the United States, Switzerland, and Canada. Eurodollar Certificates of Deposit, while being issued outside the United States, are still denominated in American currency.

When choosing to open an International Certificate of Deposit, it is important to consult with a financial advisor. Your advisor will be aware of minimum deposits required to open the account, any penalties for withdrawing money early, the stability of the bank you choose to invest with, and the denomination your money will be kept in. Your advisor will also help you choose the appropriate length of time to keep your money tied up in a CD to offer you the best return of investment.




author bio - Rocco Beatrice, CPA, MST, MBA

award-winning estate planning, trust expert

MS - Taxation, Master of Science Taxation

MBA - Management / Taxation

BSBA - Management / Accounting

CPA - Certified Public Accountant

-----

Irrevocable Trust Asset Protection, Estate Planning

International Bank of Commerce

Original article posted here: Certificates of Deposit [http://www.ultratrust.com/finance/certificates-of-deposit.html]

71 Commercial Street #150, Boston, MA 02109

tel: +1.508.429.0011 fax: +1.508.429.3034





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CD Laddering - Make Your Certificate of Deposit Work For You


If you are looking for a safe, lucrative way to invest a large amount of money for an extended period of time, Certificate of Deposit (CD) laddering may be just the thing you are looking for. It is impossible to maintain great interest rates on single, long-term investments because they are constantly fluctuating. CD laddering allows the investor to continue earning the best interest rates available for as long as they keep their money invested.

CD laddering involves purchasing multiple certificates of deposit, each with a different maturity date. It usually requires a substantial amount of money so it is important to make sure that you can afford to go without that money for an extended period of time. Here is an example of how it works. The investor has $10,000 that he/she wants to invest so they purchase a one year, a two year, a three year, and a four year CD, each worth $2,000. This way one will expire each year for four years. When the first one matures, the investor withdraws the money and any interest earned from it and re-invests it into a new four-year CD. The second year, they will do the same thing with second one. Likewise for the third and fourth year. They will continue to do this every year until they no longer wish to invest their money.

The key to laddering is to get the best interest rates possible when you re-invest the proceeds from one CD into another. This will maximize your rate of return. So, if you choose to use this investment strategy, it would be wise to compare the rates and requirements of several different financial institutions before jumping in feet first.

Besides getting a great return on your investment, there are other added benefits. If by chance you do end up needing some of your money, you will at least have access to it once a year. If you were to put all of your money into a single, long-term investment you would not have that option without taking an early withdrawal and paying a penalty for doing so. An early withdrawal is still an option with CD laddering although it is not recommended. On the flip side of that, you also do not have immediate access to your money. This is ideal because you can not go to the bank and withdraw the money on a whim and end up regretting it later. You are pretty much forced to wait which allows you to thoroughly consider other options before you withdraw your money.

A single certificate of deposit is fine if the investment amount is small and the investment term is short. If you are looking to make a large, long-term investment, CD laddering is the best option. You still have the freedom to determine how your money is invested while getting the highest possible return on that investment.




If you would like information on High Interest Certificate of Deposit be sure to visit www.cdinterestratesguide.com today!





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A Certificate of Deposit is Great For No Risk Investing


People are always looking for the next way to get rich quick. Unfortunately, there is really no legal way to do so unless you manage to score that winning lottery ticket. In this day in age, where fast food and text messaging rule, the virtue of patience has all but flown out of the door. It is easy to dream of ways to turn your ideas into money. It is easy to think about what you should have done with your money, such as buy stock in Apple twenty years ago. While these ideas may help you fall asleep at night, they are just not productive. The present is what matters and being smart with your money is the key to getting ahead. Many people are under the false belief that investing is a practice reserved for bankers and elite business people. Although stock market trading and investing may be best suited for those with some knowledge of the industry, buying into a certificate of deposit is something anyone can and should do.

The stock market is something that the average individual will probably never understand. What stocks to buy, when to sell, when to trade, and how much to invest are questions best left to the professionals. It is a very lucrative industry that has made a lot of people very wealthy. On the other hand, for those that jump into it without doing the proper research, it can deal a devastating blow. With stock investing, the investor must pay close attention to their stocks in order sell or buy at the right time. They must track other stocks for potential trades or purchases. It is a time consuming process that, when done improperly, can destroy bank accounts. When thinking about making an investment, it is important to know what you are getting into and how much time and money you can realistically invest. For those with the time, energy, and expendable income necessary, stocks are the way to go. For the rest of society, finding an investment with a guaranteed yield that pays relatively quickly is the smartest way to go.

Finding an investment with a high interest yield that does not tie up your money for years probably sounds impossible. However, there is a simple product available that almost anyone can understand and gain access to. While a certificate of deposit may not produce millionaires, it is one of the best options available to the average investor.

The best part about purchasing one is the high interest you can earn from the money you put into it. Depending on how much you invest, you can count on relatively large returns. With so many certificate of deposit options, the power of your investment remains with you. They are available in terms as short as six months to as long as a couple of years. How long you want your investment to grow is entirely up to you. The main difference between this option and a product like a savings account is that your money must stay put for the duration of your investment. The longer it stays, the more interest it accrues. The most important difference though, is that it earns considerably higher interest than any savings account. As opposed to investment options such as stock trades, a certificate of deposit is a no risk venture. The rates remain unchanged and the investment is guaranteed under federal law.

It is important to make wise decisions with your money. Keeping it tucked away under the bed or buried in the back yard may protect it, but it will never produce any positive returns. Stocks can produce very large returns, but also have the potential to crash down to nothing. The safest and wisest way to store your money is with a certificate of deposit. Making money off of secured money has never been easier.




Andy West s a writer on a variety of topics, including investing. With the recent sting that investors have felt as their accounts have dwindled, they look towards less riskier types of investing including a certificate of deposit.





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2012年5月20日 星期日

Certificate of Deposit - The Financial Safe Haven


A certificate of deposit is an extremely safe financial instrument designed to provide a higher yield than traditional savings accounts. CD's can be an attractive savings alternative if the account holder does not need immediate access to the funds.

Understanding CD's

Unlike stocks, bonds, and mutual funds, CD's are not subject to daily market fluctuations. They provide a reliable and predictable flow of interest income over the life of the CD. Credit Union members can purchase CD's in nearly any denomination over a variety of time periods. The interest rates that are offered on CD's are determined by a number of factors, including the prevailing federal funds rate, the amount of the deposit, and the term of the deposit.

Since higher rates of interest are paid on CD's, account holders should understand that their money will be unavailable for withdrawal without penalty throughout the entire investment period. CD terms can vary from 3 months to 5 years or more, and early withdrawal can result in substantial penalties. Upon completion of the term, the depositor will see their entire principal returned in full.

CD Strategies

Since CD's usually pay interest on a monthly basis, they remain a preferred investment tool for retirees looking to receive a predictable income. To address the potential for inflation, which can rob a CD of earnings value, many depositors choose a "laddering" strategy, where they purchase a variety of CD's with different maturity dates. This helps smooth out the variations in interest rates since expiring CD's are continually reinvested.

Safety

In addition to paying higher interest rates than savings or money market accounts, deposit certificates do not have the volatility of stocks, bonds, or mutual funds. For every deposit certificate, the National Credit Union Administration (NCUA) insures Credit Union members up to $250,000 per account holder.

Other Considerations

It is important to understand the rules and restrictions prior to investing in a certificate of deposit. Particularly with issues relating to maturities and tax consequences, investors are encouraged to seek further information from a member service representative at the Credit Union.

A certificate of deposit is a stress-free investment vehicle that will provide a superior rate of return.




Certificate of Deposits are an investment choice for individuals who want to avoid the roller coaster ride of the stock market. To gain more knowledge and understand CD's better, pay Wayne Westland Federal Credit Union a visit not tomorrow but today!





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Considering A Bump-Up Certificate of Deposit?


The key appeal of a certificate of deposit (CD) is that - for the most part, as compared to other forms of investments - it offers predictable and risk-free return on your money. That's because a simple formula takes the amount that you're investing, the length of time you're applying it and your interest rate and tells you the exact total you can expect at the end date of the agreement, also known as maturity. Furthermore, it's a safe choice because this type of account is insured by up to $250,000 by the FDIC.

So it may not make sense to many investors to change the security and outcome of the situation by choosing a bump-up certificate of deposit (which may also be called a variable rate certificate of deposit). What this means is that your interest rate can be adjusted during the length of the agreement, which also changes the total you can expect to make in a way that you can't necessarily guarantee at the time you sign off on the agreement. Essentially, the idea is that you'll stand the chance to make more over the same unit of time.

How it works is that whenever the bank's rates might go up during the length of your agreement, you can appeal for your interest rates to go up to meet the current offer. Sometimes you can gain only one adjustment, if not a few. When you adjust is pivotal, because an earlier bump-up can mean more accrual over time, but a later bump-up may be higher. These rates are usually adjusted according to how the market is doing as well as how well the bank itself is doing. If you think that the economy or money market is going to do well during the length of your contract, you may wish to choose this option (which is not offered by all institutions that offer a certificate of deposit).

There are also a few trade-offs involved. In some cases, the bump-up option is only available for a certificate of deposit of a certain length or amount. For example, instead of taking an agreement for a few months, you may need to sign off on investing your money for several years. The original interest rate offered may also be lower than usual to start with since you stand the chance of gaining higher interest than the average over time. Consider all of the potential pros and cons of accepting a bump-up offer before signing off on your certificate of deposit.




TM Murphy is a professional writer who lives in NYC. She currently specializes in fashion, beauty, marketing and finance articles. For easy-to-understand financial and banking advice to use on topics such as a certificate of deposit, she often turns to http://www.discoverbank.com. TM Murphy has been writing full-time since 2006, when she graduated with a B.A. in English from Northeastern University.





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Buying a Bank Certificate of Deposit - The Advantages and Disadvantages of Certificate of Deposits


In the World of Finance, A CD does not mean a compact disc; it stands for a certificate of deposit. Thus, if you manage to buy a CD through savings and loans or through banks that is worth a certain amount of money, then the bank will be paying you in return a specific interest rate for a certain time. Consequently, if you buy a thirty-month CD, you may get a 3%, which is equivalent to $5000. Although a bank might not issue CDs for less than $1000, this is not the case all the time. Usually there are no requirements for issuing CDs.

You are free to choose when to get your interest, whether annually, quarterly or monthly, or even with the maturity of the CD. Just take care that whatever your interest is, it will never be added to your original amount of the CD. This stands in open contrast to a normal savings account. Nevertheless, you can choose to be paid by check or to have your earned interest deposited in a new account.

It is preferable not to redeem your CD before the maturity date agreed upon. If you cash earlier than agreed upon, you might lose 3 to 6 months of interest payments; such a penalty is known as the "penalty for early withdrawal".

One of the advantages of CDs is their being insured by the government (usually the FDIC program) and this is because they are certificates issued by banks. In other words, buying CDs is a risk-free investment.

Another advantage is the freedom to buy and sell your CDs just like any bond or stock, for example, through a brokerage house. By selling your CD this way, you will avoid the penalty payment.

You should also put into your consideration that CDs usually come with a minimum, mostly $5000 and they must have round numbers (multiples of 1000).




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