CD Rates
Tips & Advice to help you make your decision on CD Rates
CDs are a great alternative to traditional savings accounts for businesses with extra cash. CDs, or Certificates of Deposits, are a low-risk investment for businesses. Interest rates are typically higher than regular savings accounts and vary by institution. CDs are purchased in various fixed periods of time and the time period you choose can affect the rate you will receive.
CD rates can be slightly complicated and it is important for businesses to fully understand the terms and conditions of their CD before they invest. CD rates can be fixed or variable. A fixed rate will not change while a varied rate can increase or decrease over time. Business owners should be sure to read the fine print to understand how the rate may change over time.
Rates can vary based on the CD timeframe. Many banks offer better rates on longer-term CDs. A 6-month CD may have a lower interest rate than a 1-year CD purchase. CDs are FDIC insured for up to $250,000.
Businesses should spend time reviewing the different CD options available in order to choose the best rate and timeframe for their needs. Please visit the links on the left for current rates and further information.
CD Rates Key Terms
Learn CD rates key terms to invest rightBy Shannon Tani When purchasing a CD, or Certificate of Deposit, it's important to know what you're getting. While CDs can be a safe investment, there are different types of CDs, each of which has different rates associated with it. This could make a big difference on your return on investment, so a smart investor understands the different types and which types have the highest rates. Learn the following terms that are associated with CD rates to get off to a good start.
Jumbo CD rates
Jumbo CDs are CDs that are purchased for a very high dollar amount, usually $100,000 or more. Because of this, jumbo CD rates are higher than most other types of CDs. For someone who wants a relatively safe investment and has a lot of money to invest, jumbo CDs may be the way to go.
Try: Bankrate.com discusses jumbo CD rates.
Corporate CD rates
Corporate CDs are used as an investment for corporations that want to invest the money that they don't plan on using until the future. Corporate CD rates are often higher than other types of safe investments.
Try: PNC talks about their corporate CD rates towards the bottom of the page on working capital.
IRA CD rates
An IRA, or Individual Retirement Account, is a type of investment plan that people use to invest for retirement. Some people choose to include IRA CDs as part of their portfolio mix. IRA CD rates depend on the particular CD that you choose.
Try: See IRA CD rates at Jumbo CD Investments.
Personal CD rates
Personal CD rates are often the lowest rates out of all the types of CDs. Still, because CDs are a safer investment than many other investments, many people are happy to purchase personal CDs as part of their investments.
Try: See examples of personal CD rates at Nexity Bank.
Credit union CD rates
Consumers and businesses can also purchase their CDs through a credit union. Credit union CD rates may be slightly higher than personal CD rates.
Try: BestCashCow.com discusses credit union CDs and their rates.
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation, or FDIC, is a government agency that ensures that your money is safe in the bank. The FDIC guarantees funds up to $100,000 at each bank. CDs are covered under the FDIC. If you are investing more than $100,000, consider spreading the investments across various banks so that you money remains insured.
Try: Learn more about the Federal Deposit Insurance Corporation from their website.
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