The mind: Financial intelligence about certificate of deposit

[Imhotep]

Amazing what you notice when you open yourself to something new. Recent this post had me thinking of ways to "increase wealth to set my money up to make more money".

Chilling at the local bank when I discovered the "certificate of deposit" or CD which is a time deposit, a financial product commonly offered to consumers by banks.

CDs are similar to savings accounts in that they are insured and thus virtually risk-free; they are "money in the bank" (CDs are insured by the FDIC for banks or by the NCUA for credit unions). They are different from savings accounts in that the CD has a specific, fixed term (often three months, six months, or one to five years), and, usually, a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.

In exchange for keeping the money on deposit for the agreed-on term, institutions usually grant higher interest rates than they do on accounts from which money may be withdrawn on demand, although this may not be the case in an inverted yield curve situation. Fixed rates are common, but some institutions offer CDs with various forms of variable rates. For example, in mid-2004, with interest rates expected to rise, many banks and credit unions began to offer CDs with a "bump-up" feature. These allow for a single readjustment of the interest rate, at a time of the consumer's choosing, during the term of the CD. Sometimes, CDs that are indexed to the stock market, the bond market, or other indices are introduced.

A few general guidelines for interest rates are:

* A larger principal should receive a higher interest rate, but may not.

* A longer term may or may not receive a higher interest rate, depending on the current yield curve.

* Smaller institutions tend to offer higher interest rates than larger ones.

* Personal CD accounts generally receive higher interest rates than business CD accounts.

* Banks and credit unions that are not insured by the FDIC or NCUA generally offer higher interest rates.
http://en.wikipedia.org/wiki/Certificate_of_deposit

Listed below are sites that are perfect for research. I hope the helps those of us who choose to escape the path of the average.
Good luck with your endeavors.............

http://cdrates.bankaholic.com/index.php?product=15&sort=14&go_button=Go

http://money.cnn.com/magazines/moneymag/money101/lesson3/

http://cdrates.bankaholic.com/

http://bankcd.com/index.html

 

[PLASMA CANNON]

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[montrealplaya]

props for the post...I always read about CDs but never knew what they were....until now

 

[ass lover]

so let me get this straight, im young and im not to bussiness savy. so with a CD, you out money into an account, you keep it there for a fixed ammount of time, and after the said ammount of time is up you take the money with the ammount of interest drawn on it?

 

[Race Harley]

so let me get this straight, im young and im not to bussiness savy. so with a CD, you out money into an account, you keep it there for a fixed ammount of time, and after the said ammount of time is up you take the money with the ammount of interest drawn on it?

Yep. The interest rate on that money should be a few percentage points higher than the rates on the savings and checking accts for that financial institution. Let's say in your case that you're not living paycheck to paycheck and have a little cash stashed in a savings acct that you're not going to touch anytime soon, it would be to your advantage to place some of that money into a CD acct and take advantage of the higher rate.

 

[Imhotep]

Yep. The interest rate on that money should be a few percentage points higher than the rates on the savings and checking accts for that financial institution. Let's say in your case that you're not living paycheck to paycheck and have a little cash stashed in a savings acct that you're not going to touch anytime soon, it would be to your advantage to place some of that money into a CD acct and take advantage of the higher rate.

Co-sign, you can start small $500.00 @ 4.00 or higher.

http://cdrates.bankaholic.com/index.php?product=15&sort=14&go_button=Go

Use a certificate of deposit calculator, to to find out how much interest you can earn on a Certificate of Deposit (CD). Just enter a few pieces of information and we will calculate your Annual Percentage Yield (APY) and ending balance. Click on the "View Report" button to see a detailed schedule of your CD's balance and interest earned.

http://www.bankrate.com/brm/calc/cdc/CertDeposit.asp

 

[ass lover]

Props for this post. you learn something new everyday. thanks

 

[hotair]

Make sure that you don't get a CD for more than 3 months. The reason being is that the economy is always changing and you will want access to your funds quickly if you find a better CD rate or other investment opportunity. I ladder my 3 month CDs. This means that over the course of 3 months, I buy one CD a month. This allows me to get a mature cd each month.

 

[new 2 this]

Knowledge is power. Let me also point out to some that many online banks have savings account with competitive rates to cd's and your $$ will remain liquid.

 

[Imhotep]

Knowledge is power. Let me also point out to some that many online banks have savings account with competitive rates to cd's and your $$ will remain liquid.

Post the links.............

 

[new 2 this]

Post the links.............

http://www.us.hsbc.com/1/2/3/personal?home=personal
3.25%

http://home.ingdirect.com/products/products.asp
3.00%

https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp
3.00%