Best CD Rates-What Are the best rates for certificate of deposits? Investing money into a CD is a safe way to save money and receive a good return. There is not the risk of losing money like many other investment types that take gambles to try to earn customers high returns. The economy has created a situation that requires customers to balance their finances so that they increase their wealth from now until they retire.
CDs are a great investment strategy if customers invest their money in CDs with great rates. It is possible to earn a substantial amount of money without having an overly aggressive portfolio. CD rates change on a daily basis so customers must conduct research to make sure that their money is invested in the CD with the best possible rates on the market.
Best CD Rates–What Is Considered a Good Rate for a Certificate of Deposit CD?
CD rates vary greatly be the type of CD in which customers invest their money. The different types of CDs include:
- 1-month CDs
- 3-month CDs
- 6-month CDs
- 9-month CDs
- 1-year CDs
- 2-year CDs
- 3-year CDs
- 5-year CDs
- 1-year Jumbo CDs
- 5-year Jumbo CDs
Some financial institutions may offer CDs in increments other than the ones listed above, but these are the main options that customers have for investing their money into CDs.
CD rates vary by financial institutions. Larger institutions seem like the option that customers should choose for the highest rates, but this is not necessarily true. These institutions keep up with the going rates on CDs, and they offer competitive rates that make their CDs the best investment option. The provided rates are based on information as of July 2011. The current rates are as follows:
- Rates on 1-month CDs currently range from 0.05% to 0.30%.
- Rates on 3-month CDs currently range from 0.100% to 0.810%.
- Rates on 6-month CDs currently range from 0.180% to 1.040%.
- Rates on 9-month CDs currently range from 0.250% to 1.060%.
- Rates on 1-year CDs currently range from 0.250% to 1.270%.
- Rates on 2-year CDs currently range from 0.550% to 1.500%.
- Rates on 3-year CDs currently range from 0.700% to 1.860%.
- Rates on 5-year CDs currently range from 1.000% to 2.490%.
- Rates on 1-year Jumbo CDs currently range from 0.400% to 1.270%.
- Rates on 5-year Jumbo CDs currently range from 1.000% to 2.490 %.
The rate range is included to show the lowest and highest rates so that customers can compare them and make more money on their investments. There is a big difference between the best rates and the lowest rates on CDs. The rates increase greatly according to the amount of money deposited into the CDs. Many 1-month to 5-year CDs require a minimum deposit of $500 to $1,000. Jumbo CDs require a minimum of $100,000 to receive the highest rates.
Tips on Getting the Best Rate for a Certificate of Deposit CD
- Shop around for the best rates before making a decision. Customers should not rush to invest their money into the first CD that they find. Customers should check with their personal financial institutions because they may offer special deals for their customers.
- Customers should look for CDs in places other than their credit unions and banks. These institutions may not offer the best CD rates. There is a great deal of freedom in investing in CDs. Online financial institutions that customers may not be aware of may offer better rates than local banks and credit unions. Customers can invest their money in any financial institution around the country and manage the account online.
- Find out what kind of investment options are available. Some financial institutions allow customers to invest various amounts of money into CDs with different lengths and rates. For example, a customer may be able to break down a $10,000 investment into $5,000 placed in a 1-year CD at a 1.000% and $5,000 placed in a 5-year CD at a 2.490% to receive more interest and greater flexibility.
CDs are wonderful investment opportunities that offer customers a great amount of freedom in their investment options. Rates change often so customers must conduct current research that reflects the rates at the time of their investment. Keep in mind that the amount of money invested can change the rates greatly. Customers who invest their money in jumbo CDs may be able to negotiate the rate of their CDs due to the substantial amount of money invested.