Current CD Rates
A CD Rate Comparison
Find the Best Current CD Rates
If you are shopping for the Current CD Rates, you've come to
the right place. We've searched the net for the current CD rate sources online and
gathered the results with detailed information about each bank and
their program. We've taken the tedious, time-consuming work out of the CD rate
search process, and put all the relevant resources right at your
fingertips. You are just a few clicks away from the best current CD rates that
are available today.
Here are two banks that we have found that have the best current CD rates
available: Countrywide Bank consistently appears at the top
of the list when shopping for the best current CD rates. Their regular CD requires a
minimum of $10,000 to invest, while their IRA CD requires a minimum of only
$2,500.
Countrywide Bank
CD application. If you currently don't have the minimum amount
necessary to obtain the best current CD
rates, or you don't want to tie your money up for any period of time, but still
desire higher rates than your local bank is offering, consider the
ING DIRECT - High Yield Savings
Account .
Rates that they are offering are approximately 4 times the national average paid
on savings accounts. The application is simple and you can create an account
online within 5 minutes. There are no application fees, no minimum balances to
maintain, and no monthly maintenance fees.
When shopping for the current CD rates, be sure that the bank you
choose insures its accounts through the Federal
Deposit Insurance Corporation (FDIC). Each CD account is insured for
$100,000.00. If you have more cash than that, it is recommended that you invest
in CD's at separate banks to get an additional coverage of $100,000.00 for each
CD that you have. WE would not recommend investing in a CD with a bank that does
not provide FDIC insurance, even if the CD rate is substantially higher. The
risk simply isn't worth the extra yield provided by the highest rate CD. To
verify the the FDIC status of any bank, you can call the FDIC toll free at
1-800-934-3342.
In the United States there is a central bank that implements
financial policy that effects CD rates. It is named the Federal Reserve System,
but it is neither Federal as it is not part of the Federal Government in any
way, nor is it reserve, as all money today in the United States is pure fiat
(see our CD rate glossary for the exact
definition). The Federal Reserve System is managed by a
Board of Governors. While many
economists suggest that the free market would do a better job of providing sound
money and economic stability, the Federal Reserve System (a group of extremely
wealthy private banks that has never been publicly audited) is in control of our
nations money, and makes decisions that will effect CD rates. To determine
whether to invest in long term CD's with a slightly higher yield, or shorter
term CD's offering slightly lower CD rates, it is advised that you keep abreast
of Federal Reserve policy.
One of the most frequently asked questions that we receive is
whether to invest in short term CD's or longer term CD's. While there is no
exact answer that always is correct, we will try to shed some insight on that
question. While longer term CD's offer a slightly higher rate of interest, that
does not mean that one should always opt for the highest current CD rates, and thus a
longer term. The business cycle is almost as well known as the yearly weather
cycle, which goes from summer to winter to summer to winter, etc. In like
manner, the business cycle goes from times of expansion to times of contraction
(also known as recessions) to expansion, to contraction. That is fact.
Interest rates also go through cycles. This applies to CD rates
as well, as they are directly tied to the market interest rate environment. The
best studies by economics professors have shown that interest rates follow a
longer cycle that is tied to the cycle between hard assets (commodities) and
paper assets (stocks, bonds, etc.). This cycle lasts on average 22.5 years from
top to bottom.
According to this cycle, in recent decades interest rates
dropped significantly from 1981 until 2004. Interest rates have risen slightly
since then. If the history of this cycle is any indication (and we believe there
is merit to it), you can look forward to interest rates rising and not reaching
their peak until sometime around the year 2026.
While overall interest rates as well as current CD rates will not go
straight up during the next two decades, the trend will be up. It is therefore
recommended that you invest in shorter term CD's (6 to 12 months) so that you
can reinvest at a higher rate upon maturity. You certainly would not want to
invest in a 10-year CD at 6% interest if in the ensuing 10 years current CD rates go to
13%. Why be locked into a low CD rate when you could be receiving the current
highest
CD rate by simply choosing shorter maturities and riding the rising interest
rate trend?
Other CD pages of interest.
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Compare
CD Rates
