Mesa 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 Mesa 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. Mesa Banking Rates has relationships with many banks to maximize the potential of finding the best rates.
Certificates of Deposit make great investment options because they are safe and the interest rates are higher than many other types of accounts.
Investing in a CD is appropriate for any person who won’t need to withdraw their money right away and would like to take advantage of the higher interest rates than a checking or savings account interest rate would yield. Note that fully realizing the advantages of a CD account depends largely on how long the term of your investment will be.
Short-Term
Three- and six-month CDs are available, but keep in mind that interest is considered taxable income and you will pay taxes on whatever you make in that short time period. The longer your money remains invested, the higher the interest rate will be and tax costs won’t outweigh the profit.
To be sure you get real value out of your CD, commit to an investment of at least one year.
Long-Term
Most people can stand to have some of their money tied up for a year if it means a greater return in the future. CD options that span multiple years are available as well.
Consider also that as interest rates rise and fall, and the longer the term of your CD, the greater the possibility you will miss out on rising interest rates. Locking your money into a CD will prevent you from taking a loss as rates decline, but also from making a higher return as they rise.
When you turn to Mesa Banking Rates for comparisons of CD interest rates, consider the above before you decide on the length of your CD.
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 Mesa Banking Rate partners if rates are falling or rising, and make the right choice to earn more money.
