Tuesday, March 21, 2006

Baby Steps: Step 2

Last time we looked at something really simple like making sure your savings account is getting a good interest rate. As interest rates start to possibly stabilize, it might be time to start looking at a second simple option....CDs. Some things to remember about CDs is that they offer a higher rate than a savings account but do have a penalty in interest lost for early withdrawal and the rate will not change should interest rates rise or fall. These can be ideal as an initial way of saving up money (typically in amounts of $500 and up). It could also be an ideal way to invest money for a larger purchase you want to make in a few months to a few years. You can also consider using a scheme known as CD laddering to get a higher rate than your savings account, while still keeping everything FDIC insured. For CD laddering schemes, it seems like a 1-year CD with a CD maturing every 1 to 2 months is a decent option. I suggest the 1-year because I find the interest rate improvement beyond a 1 year commitment to be too small unless you are banking on interest rates going down. Having frequent maturities helps to counter interest rate changes instead of rolling the dice 1x a year and hoping for a good rate. It also helps you have money available to pull out from CDs should you need it without having to take the penalty for early withdrawal. Now, just like savings accounts, you want to search for the best interest rate (I typically like Everbank). For this I use the CD rate search tool at CNN Money: http://money.cnn.com/pf/rates/

Of course if the best rates are close to the CD rates currently offered by the bank you have your savings account with, it might be worth sticking with them for simplicity sake.


Anonymous Anonymous said...

Another website for finding great CD rates is www.bankrate.com. You can either limit your search to CD rates within your state, or the highest CD rates in the country.

5/04/2006 1:35 PM  
Anonymous Anonymous said...

The most important collection ofhermes bag includes Hermes Birkin Bags that are priced quite high. However, the prices usually vary which entirely depends on the replica hermes available as well as the materials. With a leading Hollywood Jane Birkin, the name Birkin was originated. One may find innumerable choices of Bags from Hermes Birkin .
In this respect the best thing for you can be starting with the lida daidaihua which are available widely all over the world. The following are the benefits of daidaihua for which have gained wide popularity among the people who face a problem with their weights. The best part is lida slimming helps to keep your appetite in control which is very much essential. You must be know that slimming capsule is the craving for food that has lot of calories which makes us all the more fat. So by consuming the various products of this amazing slimming capsules you can keep everything under control. So, get one of the products for yourself and you will surely see the difference with the other slimming pills that you have been consuming lida for a long time.
You are supposed to dance on parties wearing Tiffany uk . I tell you that do not down if you say not because you can wear silver pendants . Tiffany earrings especially Tiffany bracelets are delicate that you show off unique charm when dancing and you will be the dancing queen on party. Then, how to wear your silver bracelets well to be most beautiful?
There are numerous Chanel handbags as well free which are real beautiful to see but different in quality as chanel watches . There are options to purchase Chanel by bearing very little but you have to be real detailed as there are liquidates.

7/20/2010 11:48 PM  

Post a Comment

<< Home

Listed on BlogShares pfblogs.org logo Performancing