Bank CD Rates Give You Very Little Return
Low interest rates help those that are trying to buy a home or a new car, but they hurt anyone who has money to invest. With low interest rates being the norm for so long now, anyone who has to rely on interest income is in a very bad position as it looks like nothing will change for quite some time.
The people that are hurt by low interest rates are those people that like to invest in bank certificate of deposits (CDs) and other investment that are guaranteed by the government. Government bonds would also fall into that category. Seniors often have their money in this type of safe investment vehicle because they need to be guaranteed that they will not lose the money. In exchange for the low risk, they are willing to make less that they might be able to in the stock market. However, with rates so low right now, they are making practically nothing on their money.
To find the best interest rates you need to look in many places to find them. Your local bank will most likely not have the best rates nor will the nearest city to where you live. You will need to search the entire country and to do that you can use the Internet. A nationwide search will quickly reveal where you can find the highest interest rates on any one day and luckily you will probably be able to make the purchase right online.
By looking on the Internet you will be able to find banks that give the best rates and maybe even ones that have promotions for an extra quarter point or so. You need not worry that you might be sending your money to an institution that is in another state or even clear across the country. You will be able to electronically transfer the money to them and so it doesnt matter where the bank is physically located. However, take note that even the highest rates you will find online are still very low compared to a handful of year ago.
One thing to be careful about is that if you have a certificate of deposit that is about to mature, you should try to open up a new one instead of letting it roll over. Many banks will not automatically give you the highest rates available when they roll over your maturing CDs and the only way you can get the best rates is to open up an entirely new CD. This is an inconvenience but it is one you have to live with if you want to continue to get the best rates that are offered. - 23226
The people that are hurt by low interest rates are those people that like to invest in bank certificate of deposits (CDs) and other investment that are guaranteed by the government. Government bonds would also fall into that category. Seniors often have their money in this type of safe investment vehicle because they need to be guaranteed that they will not lose the money. In exchange for the low risk, they are willing to make less that they might be able to in the stock market. However, with rates so low right now, they are making practically nothing on their money.
To find the best interest rates you need to look in many places to find them. Your local bank will most likely not have the best rates nor will the nearest city to where you live. You will need to search the entire country and to do that you can use the Internet. A nationwide search will quickly reveal where you can find the highest interest rates on any one day and luckily you will probably be able to make the purchase right online.
By looking on the Internet you will be able to find banks that give the best rates and maybe even ones that have promotions for an extra quarter point or so. You need not worry that you might be sending your money to an institution that is in another state or even clear across the country. You will be able to electronically transfer the money to them and so it doesnt matter where the bank is physically located. However, take note that even the highest rates you will find online are still very low compared to a handful of year ago.
One thing to be careful about is that if you have a certificate of deposit that is about to mature, you should try to open up a new one instead of letting it roll over. Many banks will not automatically give you the highest rates available when they roll over your maturing CDs and the only way you can get the best rates is to open up an entirely new CD. This is an inconvenience but it is one you have to live with if you want to continue to get the best rates that are offered. - 23226
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posted by X - Men @ 3:02 PM
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