Low Interest On CD's Is Bad For Older People
Anyone who has money to invest is hurt by low interest rates. If you want to buy things on credit such as a car you might like the interest rates where they are now but people who have money sitting around are not happy. Right now the saying time is money does not really apply to bank cds and other investments where you make money by lending it to banks.
The people that are hurt by low interest rates are those people that like to invest in bank certificate of deposits (CDs) and other investment that are guaranteed by the government. Government bonds would also fall into that category. Seniors often have their money in this type of safe investment vehicle because they need to be guaranteed that they will not lose the money. In exchange for the low risk, they are willing to make less that they might be able to in the stock market. However, with rates so low right now, they are making practically nothing on their money.
If you are looking for the best CD interest rates, you need to look in different places than your local bank. Right now many people are trying to find the absolute best rates they can find and they will have to search on the Internet to find them. No longer can you just look in your city and expect to find the best rate. A nationwide search is necessary to find the best CD and money market rates and luckily the computer and Internet allows you to do that.
By using the Internet you will be able to identify which banks have the highest rates and you may even be able to find ones that have promotions of an extra quarter point or so. Once you identify which bank you want to buy your CD from, you will be able to electronically send your money to that bank. This is routinely done now and there is little reason to worry about the safety of your money. However, it must be noted that the highest rates you will find right now are still very low compared to rates of several years ago.
If you have a bank CD that is about to mature, there is something you should be aware of. If you let it automatically renew, you will not be given the best CD interest rates for your renewed CD. The bank will never tell you this but in order to get the highest rate they offer, you will have to go in to the bank, close out the maturing CD, and then open a new one. This is very inconvenient to have to do every time one of your CD's matures but that is the only way you will get the best interest rate. You would think that your CD would automatically be renewed at the going highest rate but with most banks, this is not the case. - 23310
The people that are hurt by low interest rates are those people that like to invest in bank certificate of deposits (CDs) and other investment that are guaranteed by the government. Government bonds would also fall into that category. Seniors often have their money in this type of safe investment vehicle because they need to be guaranteed that they will not lose the money. In exchange for the low risk, they are willing to make less that they might be able to in the stock market. However, with rates so low right now, they are making practically nothing on their money.
If you are looking for the best CD interest rates, you need to look in different places than your local bank. Right now many people are trying to find the absolute best rates they can find and they will have to search on the Internet to find them. No longer can you just look in your city and expect to find the best rate. A nationwide search is necessary to find the best CD and money market rates and luckily the computer and Internet allows you to do that.
By using the Internet you will be able to identify which banks have the highest rates and you may even be able to find ones that have promotions of an extra quarter point or so. Once you identify which bank you want to buy your CD from, you will be able to electronically send your money to that bank. This is routinely done now and there is little reason to worry about the safety of your money. However, it must be noted that the highest rates you will find right now are still very low compared to rates of several years ago.
If you have a bank CD that is about to mature, there is something you should be aware of. If you let it automatically renew, you will not be given the best CD interest rates for your renewed CD. The bank will never tell you this but in order to get the highest rate they offer, you will have to go in to the bank, close out the maturing CD, and then open a new one. This is very inconvenient to have to do every time one of your CD's matures but that is the only way you will get the best interest rate. You would think that your CD would automatically be renewed at the going highest rate but with most banks, this is not the case. - 23310
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posted by Mr. Forex at
6:26 AM
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