CDs, or Certificates of Deposit, are great investments for earning long-term interest. Generally, a CD is a low-risk investment that tends to give you a steady return on your money over a long period of time. CDs do not offer the returns of stocks or metals, but they do not carry the risk that you have with many other investments. Researching CD financial advice can help you find the best CD interest rates available.
The best paying CDs generally have the longest maturities, meaning that the banks will pay you more for dedicating your money to them over a longer time period. It all depends on your need for liquidity. If you are going to need to withdraw funds from your CDs, then take a look at the penalties. These can be considerable, especially for long-term CDs. Thus, the general CD financial advice is to go with the long-term CD only if you plan to stay with it until the investment matures.
Be careful about the details of your terms in a CD investment. Although you may have received some of the best CD interest rates in your original investment, many banks automatically renew your CD and lock you into the new, possibly lower, interest rates. Stay on top of renewals and make sure you are always aware of the current interest rate.
Where are the best places to shop for the best CD interest rates? The most obvious choice is to buy CDs at your current bank. However, many commercial banks do not heavily promote CDs because they are not as lucrative for the banks as regular savings accounts. If you are not finding very good rates at your current bank, take a look at credit unions and online banks. Credit unions generally offer better rates than commercial banks, and online banks operate under lower costs than regular banks.
You can also get brokered CDs. If you have trust in your broker, this may be an option to consider. Sometimes, brokers get special brokered CDs, which are sold to them in bulk for better prices. Brokers can be indispensable resources for CD financial advice. Just ask your broker about his or her experience in this area and find out what kind of a rate he or she can attain for you.
The best interest rates for CDs go to the long-term CDs. But make sure you pay close attention to the terms of your CD as your interest rates can go from great to poor, no matter the length of your original investment. It is a good idea to talk to your broker to find any special deals and shop at online banks as well.