Is it safe to open a high yield CD account? - best cd yields
I have $ 25,000 in a savings account that I want an account that has some interest, you can ask, but want to make sure it is safe. My bank offers a CD with high-performance short-term (10 months) engagement is required. They guarantee a return of 5%. I want to put me on the account for 2 years.
Best Cd Yields Is It Safe To Open A High Yield CD Account?
10 comments:
Short answer: Yes, definitely.
If you have more: 5% is an acceptable performance, but I would hesitate to block money for so long. If you ever need money for nothing (emergency, the first payment or otherwise) must pay a withdrawal penalty.
My suggestion: look into money market accounts. It is also uncertain, if you use a bank or investment company. You can get 5% + on your money, but also two other advantages: 1) You can change your money at any time without penalty and 2) Delete if interest rates rise, increasing performance. On the CD you are with a 5% increase for two years solid, even if interest rates.
I use the PayPal money market fund. He currently earns 5.04%
It is a good investment. They should also collaborate with investment firms, including Merrill Lynch, which is even higher percentage because of the variety on the market offer
Yes, it is a very safe investment.
I would say that the purchase is insured a certificate of deposit in a depository institution by the FDIC as safe as you do now.
Federal Deposit Insurance Corporation (FDIC) guarantees that the U.S. government will replace the sum is a money up to $ 100,000 per depositor per insured person, unless the bank can repay the deposit on their own. This does not guarantee an interest for the period after the bank files the complaint, but at least your initial investment will be safe.
Yes, CDs FDIC insured.
Put it in 10 months. She is 2 years. It is never a good idea to spend your money on who you work for so long. If it blocks the stock market to ensure that the money is available shares is the price storm buy. While all the fights about money are lost, you can use the money for the cleaning usually sound systems such as Microsoft, Dell, Google, etc.
Put it in 10 months. She is 2 years. It is never a good idea to spend your money on who you work for so long. If it blocks the stock market to ensure that the money is available shares is the price storm buy. While all the fights about money are lost, you can use the money for the cleaning usually sound systems such as Microsoft, Dell, Google, etc.
It depends on what kind of performance you and your time horizon. A return of 5% may seem fine now, but it is about half the historical rate of return on reserves and reinvestment risk. This means that you are not in a position to endanger the same or better performance when the CD matures. Ten months from now, especially if the Fed lowers rates, it may not be able to get that 5%, and in an environment of falling interest rates, stocks are usually the best asset class to own.
I would put money in a market of mutual fund money that most products are not more than 4.3% and are completely liquid, or perhaps some bills and invest in stocks when bond market after all the recent highs.
It is safe if the CD is insured by the FDIC. If the bank does not pay the FDIC and is supported by the U.S. Govt.
http://www.fdic.gov/deposit/deposits/ins ...
If the account is insured by the FDIC that it is safe. Ask your bank manager if this is the case.
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