If you are considering the purchase of a CD, or Certificate Of Deposit, during the upcoming year, you undoubtedly have some questions about how that money will work for you and what kind of rates you can expect to get on it. While it is not possible to precisely predict the future when it comes to finance, you can learn a few basics about CD information that will help you to make a decision about whether this investment is the right thing for you. Here are some things you might need to know about CD New Year info.
Most people who purchase a CD want to know about the New Year info for it, but are not sure if it is possible to find out the rates to expect. While you can’t be absolutely certain about how much CD rates will rise in the future, there is a good chance that the beginning of 2013 will see a limited change in rates. CD rates are closely tied to the United States economy, and the economy has been lagging in recent years. However, with the early signs of a rebounding economy now showing, 2013 appears to have a brighter economic forecast for the United States than 2010-2012 did, so it is possible that CD rates will rise early in 2013. If you are considering the purchase of a CD, buying early in 2013 may be a smart financial choice, especially if you see rates begin to rise slightly.
Another consideration when you are looking at CD information is whether to buy long term CDs (such as 5 year CDs) or to go for the shorter term CDs. With the economy in a poor state, a long term CD may not be the way to go at the moment, but in the year coming up that is likely to change. When CD rates begin to rise in the coming year, take advantage of that with the purchase of a long term CD. When you purchase a long term CD, you have “locked in” that rate, and with the improved rates projected for the upcoming year, this means you will enjoy the benefits of that higher rate for the duration of your CD. Capitalize on the better rates and enjoy them for as long as possible. As soon as you see rates start to rise in the coming year, it may be time to consider the purchase of a long term CD.
If you want to make a safe financial investment, a CD is a good choice that has considerably less volatility than the stock market. Keep the tips above in mind when buying your CD for the best return on your investment.