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Certificate of Deposit (CD) Rates

September 9th, 2007 · No Comments

Certificates of Deposit are a fixed-term investment option offered by banks, credit unions and other financial institutions. So basically, in a CD, you put in some money, and after a fixed period you get your money back with interest. You can’t take out the money you put in until it matures. The lack of liquidity is offset by the fact that the deposit is insured and the returns are guaranteed, unlike, saying, money market accounts or stock market shares. Curiously enough, these days, you don’t really get a paper “certificate” for your deposit :)

The general rules for CD interest rates are that the higher the amount, or the longer the period of time, the higher the interest rate. Also, generally, smaller institutions, like your local credit unions, often offer higher CD rates. In shopping for the top CD rates available, I did a google search for top CD rates. Among the results was a site promising the highest CD rates. This was the 8th search result, and the URL was http://www.topcdrates.org. Clicking on the link took me to the site, in a weird way. Strange, try it out, and that site does have some interesting information about CDs, among other things.

If you are investing in CDs, remember that it is not enough to find the biggest, or best bank. Since CDs are insured anyways, you might do better by seeking out smaller banks. Also, if you can beat the machine by finding a good rate for a shorter period of time, then that’s all the better.