Huntsville 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 Huntsville 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. Huntsville Banking Rates has relationships with many banks to maximize the potential of finding the best rates.
Certificates of Deposit are a great investment for individuals with money that does not need to be accessed immediately and who would like to earn more money than a traditional savings account interest rate would return.
Huntsville Banking Rates compiles CD interest rates from a variety of financial institutions to make your investment decision easier. If you are concerned about locking your money into an account for an extended period of time, consider a strategy known as laddering. Laddering allows you to take advantage of the higher interest rates associated with longer-term CDs while always having an account maturing in the near future in case you need to access the funds. The following is an example of how to ladder your CD portfolio.
Begin by investing $1,000 in a one-year CD. Then, continue investing increments of $1,000 into CDs of longer and longer terms (2-year, 3-year, etc.) until you have invested your last sum into a 5-year CD. The long-term CDs will collect higher interest rates as the shorter-term accounts mature.
When the first year-long CD has matured, re-invest the funds into another 5-year CD. This way, a CD will mature every year while you continue to take advantage of 5-year CD interest rates. This solves the issue of liquidity when it comes to long-term CDs.
A clear advantage of investing in CD‘s is that CD Rates are fixed, meaning you lock in an interest rate for the entire term of the CD, and it does not change. When interest rates are dropping, your CD stays at a higher rate. If you money is in a savings account, or interest paying checking account, your interest rate will drop daily, if rate are falling. Learn from Huntsville Banking Rate partners if rates are falling or rising, and make the right choice to earn more money.
