Source: Informa Research Services
(03/26/2010) According to Informa Research Services, the national average annual percent yield earned on a 6-month certificate of deposit (CD) stayed steady from last week at just 0.72%, down from 1.34% one year ago. Because rates seem to be dropping slowly, short term CDs may be the perfect savings product to augment your savings efforts.
Short term CDs can offer all the benefits of CDs while allowing you the flexibility to take advantage of higher rates when they be come available. Always keep an eye out for higher rates being offered so that when your CD matures in 3 or 6 months, you can move it into the higher earning CDs when they are offered.
Staggering your CDs so that they mature at different points throughout the year can make this an easier goal to accomplish. By planning to have CDs mature at different times, you should be able to avoid pulling your money out of the CD before the end of the term, and thus having to sacrifice any interest earned. Additionally, laddering a mix of short and long term CDs can help keep funds available while still taking advantage of higher yielding long term CDs.
The easiest way to quickly locate the best CD rates being offered is to search online rate tables. These tables aggregate rates from lenders in your area, and list them on a single table to make comparison shopping a breeze. These rates are updated regularly so the tables should include the most updated information available.
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