Consider Your Investment Vehicle by Comparing CD Rates
Are you looking to grow your money safely? Certificate of deposits (CDs) are always a good choice. Although, varied available options may prove to be confusing, just do proper rate comparisons involving different types to make your decision.
Jumbo CD Rates
Those who seek low-risk investments Jumbo CD is ideal. These typically pay higher rates compared to the others, with penalties for early withdrawal. Not ideal for those who require fast returns.
Callable CD
High interest rates make callable CD a good investment vehicle today, especially due to the low risks involved. However, are not good if you are looking for multiple account access.
Brokered CDs
A high rate of interest with lower risks is the USP of brokered CD. You need to acquire it from brokers. The big advantage is that it is a saleable CD so you can get cash anytime you want.
Short Term CD Rates
Short-term CD rates depend on the market, so opt for them only when you are sure regarding rise in current rates anytime soon. When the situation seems just the opposite, long-term options are a better choice.
Liquid CD
Liquid CDs offer low rates of interest because of other advantages involved. Contrary to the situation with other options, you can withdraw money multiple times from the CD without paying penalties. So, ideal for those who require ready money anytime they want.
CD Ladder
With this kind of CD investment, you get higher rates compared to various online opportunities. Longer maturity signifies a higher rate. Spread out investment scenario lowers risks, so an ideal choice.
Bear CD
Go for hedging and speculating with bear CD. These offer high rates of interest when you consider longer terms. Shopping around, comparing rates, and determining reputation of credit unions or banks is the best way to go about it.
Bull CD
Market rate indices determine bull CD rates. This ensures positive returns in the form of rate increases other than regular interests.
Step Up CD
Rates of interest may become higher with time in this kind of CD investment. However, provides lower yields because of non-guaranteed returns.
Yankee CD
Offers low-risk investment opportunity for large investors however, these come with low rates of interest.
Variable CD
Different factors determine the interest rates in such CDs including price index, prime rate, market index, and treasury bills. It is ideal for a conservative investor wishing to diversify investment portfolio.
