AIG certificates of deposit allow your money to work for your small business. Look into investing in an AIG bank CD if you have extra money in your checking account earning little to no interest.

You need to consider how much money you can spare since it will be untouchable, except with a penalty, for an extended period of time. You can choose up front how long the money will be invested. AIG CDs offer investment opportunities for as little as 30 days or as long as five years. Consider the following when selecting the term for your AIG certificate of deposit:

1. How long can you stash the principal in an AIG CD before you will need it for operating or other business expenses?

2. Is your investment goal to maintain liquidity? If so, invest in a shorter-term AIG CD.

3. Is your investment goal to maximize earnings? If so, choose the longest CD term to earn the highest rate.

Action Steps
The best contacts and resources to help you get it done

Determine the amount available to invest in an AIG Bank CD and the term you want

Review your business income and expenses for the past year to determine average monthly expenses. You need to maintain liquidity for at least three months of expenses plus a cushion for any unexpected expenditures. The excess amount of cash in your checking account can be used to purchase an AIG CD. Choose the CD's duration based on your comfort level and by using a CD calculator to compare investment outcomes based on the different terms offered. Also consider CD laddering, the practice of investing smaller sums of money in multiple CDs with staggered maturity dates. This may allow you to earn higher overall interest rates while maintaining access to your money on a rolling basis.

I recommend: KJE Computer Solutions, LLC has a CD calculator. After you have determined your investment amount and some possible interest rates, you can input the information to determine your return for various durations. Compass Bank calculates your investment return while also considering your federal and state income tax rates. You may also want to use Bank of America’s CD laddering calculator to decide if laddering is a good investment strategy for your business.

Compare AIG CD rates, rewards and risks with those offered by other banks and brokerage firms

CDs offered by brokerage firms can be riskier than those offered by AIG or other banks. AIG and bank CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $100,000. CDs issued by brokerage firms may not offer that protection. Before investing a penny, find out who the issuer is, and find out if the CD is insured. Also, make sure you do not have other investments with the same issuer totaling more than $100,000. The investment above $100,000 is not FDIC insured.

I recommend: AIG CD information as well as AIG CD rates are available at AIG Federal Savings Bank’s website. You should compare those rates with CD rates offered by other banks at Bankrate.com, where you can find information on high-yielding CDs as well as information on CDs by state.

Invest in an AIG CD by phone, fax or mail

You can open an AIG CD account with AIG Federal Savings Bank by phone, fax or mail.

I recommend: AIG Federal Savings Bank makes it simple to purchase AIG certificates of deposit. You may call (866) 231-9620 from 8:00 a.m. to 5:00 p.m. EST to speak with a customer service representative. Or you can print, complete and mail or fax the AIG CD account application along with a check to open your AIG certificate of deposit account.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The minimum amount to invest in an AIG certificates of deposit is $2,500.