While it’s true that certificates of deposit can provide you with a safe place to park your cash, it’s important to realize that you need more than just CDs in your portfolio.
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While it’s true that certificates of deposit can provide you with a safe place to park your cash, it’s important to realize that you need more than just CDs in your portfolio.

Sure, you can get CDs with the highest rates, but even the highest rates now are much lower than the yields you could see back before the 2008 financial crisis. Indeed, CD rates are much lower now, thanks to the economy — and the measures being taken to help stimulate the economy.

As you consider your needs, you will also need to figure out where you will get the money to meet them.
One of the ways you can shore up your financial future and prepare for setbacks is to build an income portfolio. With careful planning, CDs can be included in this portfolio.
If the yield on a CD is high enough, it can beat inflation, providing some (low) returns, while helping you preserve capital. But what happens if inflation arrives in full force, while you are still locked into today’s low interest yields?
One of the most important distinctions to make when choosing a CD is to understand the difference between the call period and the maturity date.

Sometimes, as you look for the best CD rates, you might find that you have better luck when the CD in question has a higher minimum deposit. The more money you are willing to lock away for a set period of time, the better your interest yield. For institutions, and for high net worth individuals, one way to get a better rate, is to turn to jumbo CDs.

In times of economic uncertainty, it can be tempting to save up money while there is money coming in to be saved. At the same time, though, paying down debt is a big goal that many have. What's the best option for you?

A lot of people are now setting up CD ladders as a way to get higher interest on their savings, while still maintaining some liquidity.
Right now, we are experiencing a financial climate that makes it quite difficult to find high yields on cash products. CDs often have higher rates than traditional savings accounts, and some offer better yields than even high yield savings accounts.







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1 year 13 weeks ago
1 year 13 weeks ago