Certificates of deposit or CDs are great investment vehicles for investors searching for a low risk investment, but higher rate of return than their monies sitting in a savings account. CDs are designed to be long term investments and early withdrawal can result in penalties from the issuing institution. Why is there a penalty? […]
Many investors are not aware of the fact that you can protect your certificates of deposit or CD above FDIC (Federal Deposit Insurance Corporation) coverage limits. FDIC covers CD investments up to a maximum allowed by law per investor and institution. If you have more certificate of deposit investments in one institution than the FDIC will cover and the bank becomes insolvent, you will lose the difference between your investment and the FDIC coverage. CDARS, or the Certificate of Deposit Account Registry Service, will help you have all of your investments covered by FDIC.
In order to find the best CD Account this year, it is critical to review a few basic things: The first thing to consider is the interest rate of the account. The longer the term of the cd account the higher interest rate you will be able to get. However, if you are not able […]