E-mail :

Password :

Forgot Password? | Sign up for Free

CD Rates: Getting The Most Out Of Your Money

Posted by : Premraj | Posted on : Tuesday, June 17, 2014

Financial Solutions

Many people are looking for ways to try to make a little bit of extra money these days to offset the rising costs of food, fuel, and other necessities. But how about the money you already have in the bank; The money already stored in your savings account, or the money in your checking account that you use on a day to day basis? This is money that you already have that you could easily turn into a little extra cash each year. Interest rates are low these days, and some checking accounts don’t even give interest. Especially if your balance is under a certain amount. Is there something you can do differently to maximize the interest you receive at your bank or credit union? There is. And they are called Certificates Of Deposit (CD).

CD’s work just like a regular savings account in that you deposit the money and gain interest. However, CD’s are a little different than regular savings accounts because you get higher interest rates by agreeing to keep the money in the CD for a specified amount of time. The longer your money is in a bank, the more money the bank can make off of it, and the more money they will give to you in the form of interest. Banks and Credit Unions offer CD’s with varying time frames and CD rates. They typically range from one month to five years and the CD rate is dependent upon the length of time you choose to leave your money in the chosen CD. For example, a CD length of three months could have an interest payout of .15% at the end of the term, while a CD length of 4 years could have an interest payout of .95%. These are just examples of interest rates and you should check to see the exact payout and interest rates for your own bank, as they all differ.

To be sure that you are going to leave your money in the CD for the whole term, most banks and credit unions charge a fee for early withdrawal. This can severely offset the amount of money you are expecting to make from the interest. While it is tempting to put your money in the longest possible term to get the highest interest out of it, make sure you are going to be able to leave the money in the CD without having to withdrawal early.

Investing in a CD by a bank or credit union that is FDIC (Federal Deposit Insurance Corporation) insured or NCUA (National Credit Union Association) insured, is risk free. As the old term goes, It is “Money in the bank”.

Each bank has their own terms and conditions associated with their CD’s, and as with any other bank deposit or investment, you should also be certain to read and understand the terms and conditions.

Transferring some of your money into Certificate Of Deposits or CD’s is an easy and effortless way to make money off of interest. CD rates are higher than traditional savings account rates and the more money you can set aside for a CD, the higher the interest rate tends to be. If you’re going to have your money in the bank anyway, CD’s are the way to go.

Good luck and happy investing!

Comments : Post a Comment | Category : Money Advice, Personal Finance, Planning, Saving Tips | Tags :
How to fix a bad credit score

In the wake of an economic scenario plagued by plummeting credit scores, million of outstanding debts and soaring prices, it has become all the more important (more than ever before) to analyze your finances. Your credit scores account for a crucial part of your finances as your chances of securing loans and insurance are dependent [...]


Money tips for the Small Business

The difficult economic scenario has led marketers of several business organizations to come up with strategies, which blend the best values of costs and results. The mantra is to make each dollar, thus eked out, count. Today even the biggest names in the industry (besides those having modest backgrounds) have joined the “marketing budget” bandwagon. [...]


Finding the Best Contractor for Your Remodel

Although there are plenty of ways you can update your home décor on a budget, for larger design jobs you might need to bite the bullet and spring for a contractor. Although hiring a contractor can be more expensive than doing it yourself, having the right contractor can actually save you money in the long [...]


Balancing The Account By Hand

Who doesn’t like some extra income! We all wish for it but are often scared to take risks. But, if you have your personal finance in place, you can actually start an additional firm and earn handsomely from it. First, you have to decide which type of business you want to invest in. Once that [...]


4 Budget Friendly Ways to Secure Your Home

Today keeping a firm reign on your budget is on most people’s minds. Between paying for necessary expenses and having some semblance of a life, it can leave your bank account feeling lean. With that being said most people do not take home security into account due to their tight finances. You risk losing more [...]


What is Bankruptcy Exactly

 Photo teegardin Do you know why most of us are convinced having more money would make us happy? Because lack of it can cause us great suffering. Not having enough to pay our bills, or worrying what would happen if some emergency popped up which we don’t have the funds to cover can easily gnaw at [...]


Internet Memes to Further Your Business

Anyone who has a social media presence would be aware that the current trend ruling the social networking sites is that of internet memes. Now, what exactly is a meme? As per Merriam Webster Dictionary, a meme is an idea, usage, style or behavior that disperses from individual to individual within a culture. It is [...]


Writing Will

  Photo : kaushiknarasimhan If you are over thirty years of age and have some possessions in form of assets, investments or savings it is wise to make a will. After your death strange problems arise regarding possession and division of your assets and belongings in the absence of a will. The importance of a [...]



  What’s a guy to do when he’s so deep in debt that he can’t climb out from under?  Like you are buried deep in a mile-wide snow drift in the Swiss Alps?  It’s time to take drastic action.  If this sounds like you, drastic means three things. First, you have to stop squirming and [...]


Title vs Personal Loan

  There may come a time for many people when they need to borrow money to pay their bills or to meet a financial need. After all, USA Today indicates that four of every five Americans is going to experience or has experienced poverty, reliance on government aid or near poverty at some point over [...]


Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video