CD Rates Associated With Various Certificate of Deposits
Different kinds of certificate of deposits offer varied rates to the customers. Here below are some CD types and the rates associated. Take your pick after doing a comparative study.
Jumbo CD Rates
Jumbo CDs as the name suggests are HUGE! While you need to make at least $ 100,000 investment, the related returns are also quite substantial. The longer your term hire your returns!
Callable CD
The term of callable CDs, depend upon the whim of the financial institution issuing the same. Their rates are higher than that associated with regular CDs since the risks are also more.
Brokered CDs
Brokerage houses and third parties purchase brokered CDs and resell them to customers. They are mostly in $1000 lot sizes and for small investors to signify larger rates compared to regular CDs.
Short Term CD Rates
Rates of interest related to short-term CDs are lower than long-term varieties. However, on the upside you get returns faster and get access to money whenever required which is not possible in long-term CDs.
Liquid CD
Liquid CDs are also short-term investments where you can keep a minimum amount of $ 5000 for 3 months or 1 year. It comes with guaranteed rates and is completely risk-free.
CD Ladder
CD ladder signifies series investment in CDs having different maturities. Instead of single long-term deposits, here you can benefit from higher rates related to longer maturities.
Bear CD
Customers go for Bear CDs for speculating or hedging. Here the rates fluctuate in keeping with the market index in an inverse correlation. As the value of market index underlying it decreases, the CD rates increase in tandem.
Bull CD
In general, CDs offer fixed returns but Bull CD depends completely upon the market index. Here the interest rates are tied up with stock market values throughout its course.