These days getting the best CD interest rates certificates of deposit can be done with very little effort. Way back before comparison rate shopping could be done online you were at the mercy of local banks and credit unions. You could also pour through financial newspapers and magazines to get higher rates but that was a very time consuming process.
These days finding the best rates can be done in minutes. Especially considering how low bank CD rates and credit union CD rates are right now, every hundredth of one percent counts towards the bottom line. With CD rates at banks and CD rates at credit unions averaging less than 1 percent getting the highest rate is even more important.
Certificates of deposit are still one of the safest risk-free investments you can make. The old phrase "no risk, no reward" is definitely true when it comes to investing in certificate of deposit right now. Although your return is low inflation is low as well so a CD rate of 1.00 with a no inflation environment is just like a 5.00 percent CD rate with a 4.00 percent inflation rate.
Risk free investing is a must for many people, especially retirees who are trying to preserve their principal since they stopped working. Retirees find comparing rates a breeze by shopping online. Right now you can get a 18 month CD rate at 1.29 percent at Discover Bank. If you're looking for shorter term CD rates the bank also has a 12 month rate at 1.19 percent with an APY of 1.20 percent.
Shorter term certificates of deposit are better investment options at this point since CD rates will soon be finally heading higher. We predict by early next year 1 year certificate of deposit rates will be back over 2.00 percent and maybe as high as 3.00 percent. So you're better off rolling your CD investments over into short term CDs, that way you can take advantage of rising rates.
Besides comparing CD interest rates at banks and credit unions another option are brokered certificates of deposit. If you haven't heard of brokered CDs they are different than a regular CD from a bank or credit union and there is some risk involved.
The biggest risk when investing in a brokered certificate of deposit is the risk to your principal. With a traditional certificate or share certificate if you liquidate your deposit early you lose some of the CD interest you have earned.
With a brokered certificate of deposit you must sell your CD in a market and as with any other market the prices is determined by buyers and sellers. So what ends up happening is you get back less in principal than you paid, this is why brokered certificates of deposit have some risk involved. Sure, you can hold onto your CD until it matures and your entire principal is safe but you never know what curve-balls life can through at you.
Therefore you should stay with a certificate of deposit product from a bank or a credit union. Finding the best CD rates at banks and CD rates at credit unions can be done by searching online. Many websites offer a list of rates from dozens of banks and credit unions.
These days getting the best CD interest rates certificates of deposit can be done with very little effort.
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Gen Wright
