Six Percent CD Rates



CD (certificates of deposit) rates have gone up and are now a better and less risky investment then savings deposits, money market accounts, or stocks. Major banks are offering high yield certificate of deposit rates that are more competitive than ever, when held to maturity. Find one that offers a calculator for computing how much interest you'll actually earn compared to a similar investment. Rollover checking accounts that collect interest are fine, but those interest rates are usually low. By guaranteeing that you'll keep your money with the bank for a fixed period of time, that is until the CD matures, you can make your money work harder, with less effort on your part. A six percent CD rate is an excellent investment option.



The major banks all have comparable high yielding interest rates on their CDs. The annual percentage yield (APY) should be checked to see how they compare when you are shopping around for the highest rate. A simple scorecard can track the best financial institution from which to purchase a CD. When the dollar amount is large, a fraction of a point can make a huge difference in the size of your account after a substantial length of time. Certificates of deposit earn money by the bank loaning the money that you deposit when you buy a CD out to borrowers. Sometimes the banks also run a high yield hedge fund that invests your money in foreign or US stocks, or in foreign currencies. By trading foreign currencies, the banks can use high leverage to increase their income, which they pass along to you. However, income generated by high leverage has high risk, so don't get cute. These strategies have higher risk than purchasing a CD and holding letting it mature. You don't want to these kinds of risks with the chance of losing your hard earned money. Let the bank assume the risk, and give you the benefits of a higher yield on your money with a CD.

You worked hard to earn your money. Now make it work hard for you by making sure you get the best return on your cash. CDs collect interest at various rates depending on the period of the CD. CD terms come in a variety of time periods, and must be held till maturity to get the most interest. CDs come with maturity dates of 30 days, 3 months, 4 months, 6 months, 12 months, 18 months, and even two years. CDs are also available in longer periods of time. The longer period deposit results in a higher return to the depositor. Past performance in stocks is no guarantee of future returns. Losing all your money in stocks is possible, but not with a CD. And rates are going up, so you have more income to spend, while utilizing a safer investment.