New age flexible CD’s for the noncommittal

In the not so long past, the certificate of deposits were considered to be a big no because of the rules and regulations associated with them and the low rate of interest they offered. However, with the passage of time, this notion has changed and today, an increasing number of people are willing to go in for certificate of deposits because they are counted among the safest investment options with good returns, thanks to new age certificates of deposits. As compared to the traditional CDs of the past, the new age CDs has a lot more to offer which is the primary reason for their increasing popularity.

Customers in the past who had invested their money in traditional CDs faced two main concerns. One was that the lock in period for very long and the other was that they would not stand to gain much even when the rates went high because the rate of interest was pre-decided. However, in modern times, the smarter customer has the option of CD laddering that is sure to bring in more returns that he ever expected. The CD ladder is the perfect option for people who have a lot of spare cash on hand and an extended time period for which they can keep it locked.

The other customers need to worry too much though since the new age CDs have a lot of options for people with limited cash on hand and shorter time frame to invest it.

No Penalty Certificate of Deposit

The no penalty certificate of deposit is a great option for people who do not like the concept of having their money locked in for a long period of time. As the name of this CD says, you can withdraw money from these certificates of deposits without having to pay through your nose for penalties. However, the terms and conditions that govern these CDs can be stringent and the interest rate offered may be slightly lesser as compared to the other certificate of deposits. Also called “liquid” CDs, you can choose to withdraw either the entire amount or a part of the amount invested in the CD.

Step Up CD

The step up CD is also referred to as the bump up CD by a few and like the name says, it provides the customers an option of availing higher interest rates when the rates in the market go up. This helps people overcome the problem of staying stuck with lower rates even when the condition of the financial market improves.