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Indexed CDs: More To Gain, Less To Lose

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CDs & Investments: With interest rates on traditional CDs so low, why not take a chance on an indexed CD? By taking a chance, we don’t mean taking a chance with your principal. That’s still FDIC insured. We mean take a chance on how much you might — or might not — earn. The return on indexed or market-linked CDs isn’t fixed as it is with traditional CDs. It’s tied to a stock market index like the S&P 500, although it can also be dependent on everything from commodity prices to Treasury bill rates. If the index is higher on the maturity date than on the purchase date, you make mo...

BanksGuru on April 28, 2010 0

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Getting the Best CD Rates

CDs & Investments: The safest investment vehicles are Certificates of Deposit (CD’s). CD’s are the right choice for people who don’t want to risk; CD’s are risk-free. CD Basics Like a saving account CD’s pay you interest on your money, but with a CD your earning are usually higher. Comparing you will find that CD’s always pay a higher APY than a saving account. Why do they pay more? Your bank pay you more when you buy a CD, because they expect that for some period of time you will return the favor by keeping your money in the CD. So they use your money ...