Online Stock Trading - Best Bank Rates and Bank CDs
In these economically challenged times it is important, if you still have any money, to find the best bank rates. Interest rates have been plunging of course, in the UK they are now down to 1% in the US they are 0.25% and in the UK at least they will undoubtedly drop even further next month. With the stockmarket and stock investing being so uncertain you may even think a bank account is the closest thing to a high yield investment you can find.
In the UK you can now get better rates on your current account or checking account, than you can on a deposit account.
High interest CDs, bank CDs or High-Yield Savings accounts are an interesting area that you can research if you are looking for somwhere to park your cash for a decent return, check out here for information on Best CD Rates.
CDs or Certificates of Deposit are a special type of U.S. savings account with a savings & loan institution or a bank, that you leave in the account for a stated period of time and which generally offer higher rates of interest than ordinary savings accounts. The CD attracts a fixed rate of interest at regular intervals.
The rates of interest vary across different banks and regions. They may be as wide as 2 to 4 percentage points.
CDs are insured up to $250k per depositor and per insured institution by the FDIS (Federal Deposit Insurance Corporation), or up to $500k for a joint account.
There is generally a penalty charged for early withdrawal, which once again vary widely between banks.
High-Yield Savings accounts are also insured by the FDIC up to $250k per insured institution per depositor, or up to $500k for a joint account.
High-Yield Savings accounts operate in a way that is similar to a traditional savings account.
You can also get access to such accounts by deciding to auction your money and letting banks bid for your business! What a neat idea.
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