The most difficult, and important, decision to make when investing your hard-earned money is which type of investment account should you choose. Certificate of deposits mature at a fixed rate on a fixed length of time, so you know what you’re getting up front. Mutual Funds may give a higher return, but are risky because they rely on the success of the stock market and the choices of the firm doing the investing on your behalf. Be sure to do your research on Fort Collins Banking Rates before you decide.
Common types of investment income accounts:
- Certificate of Deposits (CDs)
- IRAs
- Savings Bonds
- Stock and Mutual Funds
- Money Market Accounts (MMAs)
No matter what type of investment you decide to make, or even if you’re just seeking more information to help you make the right decision, Fort Collins Banking Rates can help make that decision easier.
Submit your information today to learn more and see available rates for CD rates and investments.
Fort Collins 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 Fort Collins 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. Fort Collins Banking Rates has relationships with many banks to maximize the potential of finding the best rates.
CDs or certificates of deposit come with a lot of advantages that savings accounts and other investing methods do not have. First of all, their interest rates are much higher than savings accounts. They are insured by the FDIC, which means your investment cannot disappear the way a stock investment can with a change in the market. They are a safe investment, and one that many people turn to at some point in their lives.
There are several different types of CDs you can choose from. Some come with more risk, like bump up or callable CDs. Others allow you to take almost no risk, like liquid CDs, where you can withdraw as frequently as you want to without penalty. Choosing the type of CD which is right for you is the first step. First time buyers generally tend to buy traditional CDs and then expand from there.
The next step is figuring out what you need it for and therefore how long your CD term should be. Short term CDs, generally lasting one to six months, are good for things like emergency fund savings. You still have frequent access, while still gaining interest. Longer term CDs, generally six months to two years, should be for expenses coming up in the nearby future. The longest term CDs, lasting several years, should be for far off events, like a child’s college education or marriage.
Once you figure out what kind of CD you need, let Fort CollinsBanking Rates help you find the best CD rates for your future investment.
