Springfield Banking Rates want to help you earn money, save money and put yourself in the best position for your own financial situation. If you have a savings account that you do not need for the rest of this year, it may be a good idea to invest into a 6-12 month CD and take advantage of the higher interest rates. You can earn up to 1% or more in a CD versus a savings account with a $5000 CD over 10 years; that can be over $500-$1000 more in interest payments with the higher CD rate.
Many local Springfield credit unions offer competitive CD rates, money market accounts and IRAs, as do the larger national banks. If you want to get the highest interest rates, be sure to thoroughly research banks with the best offers before you make your decision. Springfield Banking Rates has relationships with many banks to maximize the potential of finding the best rates.
A clear advantage of investing in CD‘s is that CD Rates are fixed, meaning you lock in an interest rate for the entire term of the CD, and it does not change. When interest rates are dropping, your CD stays at a higher rate. If you money is in a savings account, or interest paying checking account, your interest rate will drop daily, if rate are falling. Learn from Springfield Banking Rate partners if rates are falling or rising, and make the right choice to earn more money.
Certificates of Deposit or CDs offer a unique financial opportunity. They give higher interest rates than CDs and let you choose the amount of time to keep them in the bank. The more time you are willing to have limited access to your money.
CD Laddering is a technique to maximize your money while still having frequent access to at least part of your money. The basic idea is to take an amount of money and split it into equal amounts to invest into timed CDs. For example, you have $10,000 dollars to invest. You split that money into five separate amounts of $2,000. You invest in one-year, two-year, three-year, four-year, and five-year CDs. As each amount matures, you reinvest it as a higher interest five year CD. In this way, you have continually maturing five year CDs, with one chunk of your money always within reach.
Some things to keep in mind with CD laddering are that interest rates will change with current economic shifts. Invest during an economic downturn to reap rising rewards. While longer term CDs will give you better rates, you may be more concerned with frequent access. In this case, you can also invest in monthly or semi-annual CDs. Finally, this method will not be as profitable as simply investing all your money in 5 year or longer CDs, but the advantage is easy access to part of your investment at all times. Consider whether CD laddering might be an effective financial method for you. Let Springfield Banking Rates help you find the most current and competitive CD rates.
