Rockford Banking Rates want to help you earn money, save money and put yourself in the best position for your own financial situation. If you have a savings account that you do not need for the rest of this year, it may be a good idea to invest into a 6-12 month CD and take advantage of the higher interest rates. You can earn up to 1% or more in a CD versus a savings account with a $5000 CD over 10 years; that can be over $500-$1000 more in interest payments with the higher CD rate.
Many local Rockford credit unions offer competitive CD rates, money market accounts and IRAs, as do the larger national banks. If you want to get the highest interest rates, be sure to thoroughly research banks with the best offers before you make your decision. Rockford Banking Rates has relationships with many banks to maximize the potential of finding the best rates.
CDs or certificates of deposit offer higher interest rates than many other types of savings. Where a regular savings account might offer a 0.10% APY, long term CDs can offer rates higher than 2.00% APY. However, because CDs are a timed investment, many people are afraid to invest too much money into CDs. Your financial attitude can help determine what type of CD is right for you. Consider which profile fits you best before choosing a CD.
Risk taker. Bump up, callable, or long term traditional CDs are probably the best options for your attitude. Bump up CDs allow you to trade your current interest rate in for a higher one at some point during your CD term, but you have to be savvy enough to know when the rate is high enough for you to be willing to bump it up. Callable CDs allow banks to readjust your interest rate after the callable period. If you get the right high rate at the beginning, it could be worth the risk. Finally, long term CDs can take years to mature, so you have to be willing to put that money away and not see it for awhile. Each of these investments requires some financial know-how and the desire to take a risk.
On the fence. Medium term traditional or brokerage CDs are your two choices. Medium term CDs come with lower interest rates than longer terms, but you will only wait a couple months or a little over a year for your money to mature. Brokerage CDs are backed by the FDIC and are insured as long as you keep them in for the full time period. Both of these options come with slight risks for the average investor.
Very cautious. Short term traditional CDs or liquid CDs are your best bet. Short term CDs can take only a month to mature, but they come with much lower interest rates than longer terms do. Liquid CDs allow you to withdraw money from the CD and still let it mature. Both of these allow access to your money, but come with lower interest rates as a consequence.
Once you choose which type of CD you want, let Rockford Banking Rates help you find the highest CD rates in your area.
