Even though AIG is now largely owned by American tax-payers, you can still purchase AIG certificates of deposit from AIG Bank. Whether or not this is a sound investment decision will depend upon your specific situation, and the health of the company as a whole. In today's volatile economic market, a company's status can change from week to week or even day to day.

Internet resources provide information at a steady clip. Before you make any investment decisions, find out the latest AIG certificates of deposit (CD's) news and trends online:

1. First and foremost, determine current AIG CD rates.
2. Check financial websites for the most up to date AIG CD information.
3. Visit financial blogs before investing in an AIG certificate of deposit.
   

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

First find out information about AIG certificates of deposit, such as rates

AIG Bank CDs are FDIC insured up to $250,000. They are offered for a fixed term (between six months and five years), at a fixed interest rate. When you invest in a CD, you generally get a better interest rate than if you held your money in an investment where you could withdraw on demand. Because of the nature of the beast, there are penalties for early withdrawal.

I recommend: Find out current interest rates and APY (annual percentage yield) for AIG CDs on the AIG Federal Savings Bank website. Compare AIG's CD rates with other lenders at Bankrate.

Visit online investment websites for the latest news regarding AIG CDs

Full-featured investment websites provide you with current and past news about any publicly traded companies. Before you invest in an AIG Bank CD, make sure you have read the latest.

I recommend: Visit MSN Money at Microsoft or Yahoo! Finance for the latest in AIG news. Yahoo! Finance links to headlines, company events, financial blogs and a forum. MSN Money lists headlines, news from the web, editorial commentary and press releases. Both sites provide detailed stock quotes and charts.

Get up to date news from financial blogs before investing in AIG CDs

With such extreme market volatility being the status quo, it's worth your while to spend the extra time ferreting out the latest rumors about AIG. AIG in particular is now owned by you, the taxpayer. This gives the US government a lot of power in dictating certain aspects of the company. Find out the latest before investing in AIG CDs.

I recommend: The Bank Run Blog will let you know if AIG is in a state of impending disaster--definitely something to know before purchasing a five year CD. The Informed Banking Blog and BankVibe blog both list the most current news regarding the AIG Bank.

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.

Certificates of deposit (CDs) are some of the easiest investments to use. Like savings accounts, they offer you a risk-free way to earn interest on your money. Unlike savings accounts, however, CDs have relatively high interest rates, AIG, for instance, offers rates of up to 3.46 percent at times. This may not be enough to outperform the best stocks, but it's far more reliable, making it good for investors with a low tolerance for risk.

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

APY

APY, or annual percentage yield, is the total return you receive from the CD each year. AIG offers APYs between roughly 2 and 3.5 percent, depending on how long you keep your money in the CD.

I recommend: Read up on the differences between APY and annual percentage rate (APR) at Mind Your Decisions.

Federal deposit insurance

Unlike stocks or mutual funds, the federal government insures the money you put in a CD. Currently, the Federal Deposit Insurance Corporation (FDIC) insures investors with money in CDs for up to $250,000.

I recommend: Learn more about the specifics of federal deposit insurance at FDIC.

Maturity date

A CD's maturity date is the day you can redeem it for cash. AIG offers short- and long-term CDs, with maturity dates ranging from 6 months to 5 years.

I recommend: See Investopedia for a short and understandable explanation of maturity dates.

Minimum funding

The minimum funding, or minimum deposit, is the smallest amount of money you'll need to open a CD. AIG requires minimum funding of $2,500 for all of its CDs, regardless of their duration or APY.

I recommend: Find out more about the specific terms of investing in a CD with AIG by opening an account.

Routing and account numbers

You'll need to know your bank routing number and account numbers to open a CD with AIG, which transfers the initial funding directly from your checking account to the CD.

I recommend: The American Bankers Association is responsible for issuing and maintaining a national database of routing transit numbers. If you don't know how to find your routing number, get help from Bank of America.

Callable CD

A callable CD is one that the issuing bank can terminate, or call, before it matures. Callable CDs typically have higher rates of interest than non-callable CDs, but they are also riskier, since there is no guarantee they will mature. AIG issues non-callable CDs.

I recommend: The Securities and Exchange Commission (SEC) has published an excellent article on CDs that gives you great tips for negotiating callable CDs and avoiding bad investments.