You Would Like High Rate Certificate Of Deposit

CDs or certificates of deposit have been traditional repository of safer investment. This is more so because a number of high rate certificate of deposit is insured from the federal government or FDIC. This allows the purchaser to enjoy protection from unhealthy practices by some of the financial institute to increase or decrease the rate of interest even though the agreed rate of interest was different. It also helps investor to get full benefit of his/her investment although there is an economic downturn or if the bank closes for bad management decisions. There are uninsured certificates of deposit with high rate of interest as well. One needs to pick and choose.

Large deal of competition is seen in the market for CDs and as such there are huge number of banks and financial institute offering high rate certificate of deposit. Average investors have to do a lot of homework before they are able to find best rates and terms on the certificate of deposit which they would like.

So, there are few things that are important in this regard such as:


There is no short cut and as such the more one is able to study and know about the market of such investment opportunities, further they would benefit. There are online help available from experts. There are sites, blogs and forums, where investor can get to clear their doubts or place their queries. One of the easiest ways to find high rate certificate of deposit is through the sites which let you enter the amount and the length of time and they will display all the possible opportunities to invest in certificates of deposit.

CDs with longer maturities

There are certificates of deposit with high rate of interest, if the investor is willing to lock the amount for a considerable length of time. The difference is as much as two to about three percent.

Other options

There are certificates of deposits which are uninsured and as such they offer high rates of the interest. Apart from that there are variable rates certificates of deposit such as bump up, step up or liquid CDs, where the interest rate is high. Specialized CDs are also available.

Smaller Banks sometimes useful

Big banks already have large amounts of money in their treasury and as such they do not feel the need to allure the consumer with high rate certificate of deposit. As such approaching smaller community banks or even credit unions will help you get your pick from amongst some good rates. Smaller banks need to have deposits because they need to reach to a certain level of solvency for their growth. This acts on consumer’s favor. Online banks also offer high rates of interest. This is because their operating cost is lower.

Competition can improve your chances

There are banks who bid to get more consumers for themselves. There are sites online, where one can put the amount and the period of time. Against the information, banks will bid with their rate of interest. This allows the purchaser to pick a favorable high rate for themselves.

Get Broker

Brokers are quite aggressive and helpful in finding quality high rate certificate of deposit. They have access to huge databases and all the available CDs from across every banks and country.

Earn High Rate Certificate Of Deposit

There are varieties of financial instruments in the market which are well accepted by consumers for investment needs. One of the safest and popular of them all is certificate of deposit. The high rate certificate of deposit is when an amount is kept with the financial institute for a definite period of time with an understanding that the amount will earn high rate of interest over it. Some of the certificates of deposit of such nature are FDIC or Federal Deposit Insurance corp. insured. There are few uninsured certificates of deposit as well for given amount kept over a minimum time period. The interest is paid upon the arrangement agreed upon between the parties. In insured certificates of deposit, if the bank fails, the FDIC makes up for loss to a maximum of 250, 000 dollars per account.

Before you find the high rate certificate of deposit, you need to ensure how much amount of money you can agree to keep untouched for a certain period of time. The length of time would also depend on financial condition of the purchaser. There are online sites with information about banks, financial institute and credit union which offer certificates of deposit. One needs to put the information of the amount and the period of time, they would keep the amount fixed for, the rest of the information is automatically displayed after the information is fed onto the platform.

Various banks are present that give ratings, interest rates and whether or not they are FDIC insured. There are high rate certificate of deposit present in three month CDs, six months, 1 year, 2year, 5 years, 10 years and more. Jumbo CDs are present which require a minimum deposit of up to hundred thousand dollars and where purchaser would receive a significant high rate of interest.

In general investing more amount of money for higher time period would fetch high rate of interest. However, investor got to be sure about the amount and whether or not they can keep such amount untouched for the period asked for. Purchaser would not be able to access the fund anytime soon. If they do, they would need to pay a penalty for that. Surprising exceptions are there. For instance there is high rate certificate of deposit known as liquid CDs, where the purchaser is allowed to have access to a part of the fund after some length of time.

There is also high rate certificate of deposit known as bump up CDs and step up CDs. In Step up CDs, the rate of interest is increased once during the tenure. In Bump up CDs, the rate of interest is increased a number of times during the entire tenure. However, one needs to ensure that the interest rate they start off with is not lower than available rates of interest in the market. So a lot of factors and aspects have to be compared before finally picking the best of them all. One can take help of different sites online, which allows the purchaser to compare the rates. One can also approach deposit broker for information in this regard. However double checking and having some prior information and knowledge always helps.


What is a Negotiable Certificate of Deposit?

Certificate of deposit is very similar to savings account. However, there is a difference between the two. The amount in deposit with the bank, financial institute or the Credit Union and is locked. The purchaser of CD does not have access to his/her cash during the entire tenure till its maturity. Another important difference and an advantage of certificates of deposit with savings account is that the rate of interest is higher than savings account. This is the reason most investors favor CDs over savings account. Moreover, unlike stocks and share, this investment is risk-free.

When investors put money in the bank, their hard-earned money is insured by Federal Deposit Insurance Corporation or FDIC.  If it is with credit union, then it is insured by National Credit Union Administration or NCUA. The fixed term or length of time for which the amount from the purchaser is kept fixed with the financial institute for certificate of deposit varies. It can be few weeks, two or three months and sometimes 5 or 10 years and more. If the length of time for which it is kept locked is increased the rate of interest increases too. The rate of interest is also dependent on the amount.

During the entire tenure till maturity of the CDs, the investor cannot access the amount and if he/she does they have to pay penalty from the principal or even accrued interest. Terms and condition of entire investment starting from amount, interest, how it will be paid and the penalty terms are pre-determined. Fixed rate certificate of deposit is most common. Nonetheless, there are CDs with variable rate of interest too. There are CDs where the interest rate increases after a definite period of time, such as bump up CDs and step up CDs. Here, a single or more than a single readjustment within the interest rate is allowed and the time of readjustment is on consumer’s choice.

There are special CDs where investor can have access to a certain amount from their deposit after a definite period of time called liquid CDs. Every now and then, CDs are indexed with stocks, bonds, or such indices. In order to get the best out of the investment one put in, it is important to know the principles. General guidelines for certificate of deposit are:

1) If the principal is large, the rate of interest will be higher. However, it is not directly proportional with the principal amount.

2) If the amount is kept for longer periods of time, the rate of interest is high too. Some exceptions are those which work with inverted curve of yield. So, after recession, the rate of interest might go down.

3) Since competition for selling certificate of deposit is huge in the market, the smaller institute, in order to attract buyers offer higher rate of interest.

4) Uninsured CDs have higher rate of interest.

The terms and conditions of certificate of deposit vary as well. Usually, before the purchase of CDs, the disclosure document of the booklet of ‘Truth in Savings’ is made available to the purchaser. A written document follows CDs, which has legal weight. In case, the financial institute with which the investor has partnered merges with another institute, the CD is closed by purchaser or there is any other issue that arises for any reason, the terms of the legal document is followed by both parties to keep true to the contract.

Certificate of Deposits Investments From Other Countries

CD Certificates of Deposit are available for short or long periods of time from a financial institute. Either there is a fixed rate over the amount deposited or variable rates of interest based on market indices. Rates are also dependent on length of time for which it is deposited and over the amount deposited.  If the time period or the amount or both is increased, the rates of interest also increase. Till the date of maturity arrives, the investor will have no access over the sum because it is kept locked with the bank. In case they need the amount, the financial institute charges a penalty over the interest or the amount.

Different types of CD certificate of deposit are available around the world. Countries likeAustralia,New Zealand andCanada has term deposits. InGreat Britain, certificate of deposits are available as bonds. Countries like India have fixed deposits which has similar guidelines like certificate of deposit.

In term Deposit Rabo Direct and Greater building society are the two names that frequently come as the best financial institute offering investment options or CDs. ING Direct also has good and quite developed competitive offerings on term deposit with online functionality. Bancolumbia has term of 360 days within amount of 10,000,000 dollars and 49.999.999 dollars for a fixed rate. Deposit application as well as maturity process for all above financial institutes is simple. One only needs to open an account in any of branches.  Some of the guidelines differ with their country and state.

For instance, in order to buy CD certificates of deposit fromSpain, account with any of the branches ofSpain is necessary. In case, the investor is not fromSpain they would need a non-residential certificate. There is an application that requires about 10 days to process. After verification, certificate of deposit can be handled online. Again, term deposit is available fromCanada and guaranteed from Canadian Deposit Insurance Corporation or CDIC. Canadian currency needs to be deposited and the available term deposit in the market of Canada is not more than five years.

For 1 month term deposit, the highest rate of interest is 1.05 percent from the Ontario Civil Service Credit Union. The next in line is Comtech Credit Union which offers term deposit at 1.0 percent interest. Deposit amounts vary according to financial institute with whom the partnership has been formed. For example, Ontario Civil Service Credit Union requires 20,000 dollars in Canadian currency and the Comtech Credit Union only $1,000 Canadian. There are other financial institutes too.

Euro CDs are also widely in demand. Those CD certificate of deposit that are available from the banks in US are guaranteed from the FDIC, while those from outside are not.US banks offering euro CDs and which is quite popular is from Wilmington Savings Fund Society under the Everbank division. One can purchase from HSBC group as well, which is one of the largest and world’s most famous banking organizations.

American investors prefer overseas investment in CDs mainly for two reasons. The rate of interest is higher and the dollar value is also low. There are risks that the investor needs to mitigate. One of the risks often seen for the euro CDs is that the value of dollar might appreciate before even the CDs matures. This will quite about wipe out most of the earnings from the CD certificate of deposit.


Wachovia Certificate of Deposit

Wachovia is part of the Wells Fargo, which is a world renowned financial intuition offering savings account, checking account, home equity, student loans, personal and auto loans. Combined with different products from Wachovia, there is also online banking services, which cater 24/7 to varied needs of clients sitting at different places around the globe. What’s more convenient for having an account with Wachovia is that clients enjoy convenience of more than nine thousand financial services from different locations as well as help from ATMs of Wells Fargo and Wachovia from one coast to the other. There are solutions for every need close to home for which it is favored for buying CD certificate of deposit above all other FDIC insured banks.

Wachovia is also FDIC insured. This means accounts with Wachovia, will come under a coverage of about 250, 000 dollars. Besides savings, which has commendable rate of interest and complete access, there is great yield insured full term Wachovia CD certificate of deposit. Starting from three months, there are certificates of deposit for 2 years or more. An added advantage of having a relationship with Wachovia through certificate of deposit account is that the balances in the account of CD helps investor to also qualify for Crown banking SM. This package is one of premier packages available from Wachovia, with no fees for the services provided.

In order to apply for a CD certificate of deposit account online, one needs to go online and fill up an application form with the amount and the term of deposit. After the fund is transferred to CD account, the interest rate is calculated from the day till the maturity date. Even though this is an electronic transfer, it is extremely secure and information from each client about their investment is kept completely safe and private. Great rates are guaranteed at Wachovia, only if the investor has the eye to see and the patients to research for the same.

Short term CD certificate of deposit rates at Wachovia change according to state. This is the reason the rates are sometimes unavailable in the site. However, if investors care to call the customer support services, they will receive guidance and guidelines of rates available. Recently, an 8 months CD with about 5.61 percent annual percentage yield was sold, which required a deposit of five thousand dollars. Moreover same was available inCalifornia with 5.45 percent APY for 10 months and inFlorida andTexas with about 5.40 percent APY in 7-month term CD.  This also did not require a checking account.

Wachovia Fixed-Rate Certificates of Deposit has wide range of terms as well as balance tiers in order to optimize earnings. While there are deposits of only thousand dollars CD available there are more than hundred thousand dollars too. Maturity date is notified to clients beforehand. The investors have options to withdraw the money or renew the CD under new terms. In case, investors forget, then the CD amount is automatically transferred to available rates for that particular product. However, there is an additional advantage for Wachovia clients. After 7 days of renewal, account holder can decide to withdraw the money without penalty. They are also allowed to make changes like selecting a new term of CD or increasing the fund, if they wish to. In few of the special CDs available with Wachovia, clients need a checking in order to open a featured CD certificate of deposit.

Bank of America Certificate of Deposit

CD Certificate of deposit is an agreement between investor and a financial institution to lock the money for a fixed length of time.  Investor receives an interest on amount locked. This interest is higher than savings account deposit and this investment type is completely safe. This is the reason lot of businesses and investors try keeping funds under certificate of deposit terms. There is lots of insured and uninsured certificate of deposit available in the market.  Bank of America is an insured financial institute. Accounts with them can guarantee an investor with coverage of 250, 000 dollars.

Not only is Bank of America FDIC insured financial organization but it is also the second largest bank in theU.S.It is headquartered inCharlotte,NC. Altogether this bank has 6,427 branches all over the country with thousands of ATMs inAmerica’s 35 states. Online banking is one of the services in cater for account holders. Other services are credit cards, home equity loans, mortgages and so on.

Recently, the interest rate for the bank for its savings account came down from the earlier higher rates as industry was hit with recession. The same was the fate of checking, traditional savings, market accounts and certificate of deposit too. The most popular products of all are the short term deposit products. One of the products is available on 12 months deposit period. Another is available for about 24 months deposit period. The Annual percentage yield on 12 months CD certificate of deposit is 1 percent on five thousand dollars. In case of 24 months CD, the annual percentage yield is 1.50 percent over five thousand dollars.

The minimum balance for certificate of deposit with bank of Americain case of their high yield CD certificate of deposit is five thousand dollars. In case, investors are willing to put more money, then investment amount can go as high as 1,000,000 dollars. However, one must keep in mind that the coverage restriction is 250, 000 dollars per account with this bank. So, in order to avoid risks, it is best to distribute larger funds between renowned banks.

Bank of America was established in 1904. In order to open a certificate of deposit account with a bank that has such huge experience and approval of experts behind it, one needs to follow certain simple steps, which are visiting the site. After entering the zip code or city or even the state name, the rates of CDs and the associated information is displayed. One only needs to have a social security number to identify them. Other requirements are number of an already existing debit or account number, email, a home address and the password or banking ID.

In short term, such as 90 days plan of CD certificate of deposit, Bank of America provides a high rate of return. Compared to savings account, it is better. The rate of interest for other products of CDs is quite reasonable too. Interest rate is mostly influenced by other bank and also the monetary policy for Federal Reserve. The fed sets the fund rate based on forecast of the economic inflammation. This forecast influences whether Bank of America keeps the rate unchanged, lowers or raises the rate. The cash deposited with the bank is used as cash flow source to fund other activities. Recently, a lot of regulations have been added. Competition has also risen in CD certificate of deposit because of innumerable number of available insured banks and products. Certificate of Deposit offers market accounts, savings and high yield CD or certificate of deposit of different kinds online. There is 24/7 online support for customers to manage their account. Privacy policy and also transfer of funds into accounts are safer and stricter too. For a company which was opened in 1919 with branches inDetroit,Toronto,San Francisco,Chicago andNew York, Ally has come a long way. It was in 2010 it was named as Ally Financial. The products available for certificates of deposit from Ally Financial is not only customer friendly but it has interesting intelligent tweaks which are quite worthy in today’s market that has gone down with the over pressures of recession and other economic downturns.

There are two products from Ally financial, which are quite worthy of note because investors can lock higher rate of interest and at the same time can carefully exit from the plan if there is an inflation of any nature. Normally, the usual deal for certificate of deposit is that the investor has to keep money for a fixed period of time with the financial institute on an agreement of an interest over the amount. During this entire tenure the money is completely locked in. However, Ally financial has no penalty certificate of deposit. This means that 6 days after the account is opened, the investor can withdraw the money without suffering any penalties.

It is also possible to open an account with zero dollars and then transfer the amount within 10 days of the opening date. The investor will receive the complete rate of interest for those 10 days as well. What’s more striking about the CDs with Ally financial is that there is daily compounded interest. This means that instead of paying interest over the initial sum of deposit, the interest is also added up and the interest is put against the raised amount.

Each and every CD holder with Ally Financial also has 250, 000 dollars insurance coverage together with automatic renewal options. In addition, for the withdrawals before time, instead of handing over half of the interest to the bank, there is only 60 days of interest penalty for all its CD starting from 6 months to 6 years. Other products include raise of your rate certificate of deposit, IRA high yield CDs and IRA raised rate CD. In raised rate CDs, rate in increased once for 2 year plan and twice for 4 years plan. Same is true for IRA raised CDs. Available IRAs with Ally Financial are traditional IRA, Roth IRA and Sep IRA.

Since withdrawal penalty of Ally Financial is so low, one can deposit the CD and in case there is any investment where the rates have significantly increased, one can come off the old term without suffering any major damage. The break-even requirement of the CD depends on the rates and also how long the investor has held the CD with them. If the rates have stayed low for a long time, one can move ahead since for a long time they have earned a high interest rate from the bank.

The bump-up 2 year plans are also popular amongst Ally Financials’ clients. The interest for 2 year is 1.29 percent. Instead of withdrawing the money, this 2 years 4 year raised rate CDs are good options because one can have the raised rate of the market. Moreover, a huge advantage of CDs opened with Ally is that the investor can open a certificate of deposit with only five dollar and also with fifty thousand dollars. Certificate of Deposit

E-Loan is headquartered at Rosemont, Illinois. Earlier it was at Pleasanton, Californiafrom where it was shifted across to Illinois. It is a financial service company. It offers CD certificates of deposit, home equity, and also savings account options. In fact, also assists its partners to find good rate of interest loans. Initially, e-Loan acted as a direct mortgage lender. However, based upon the decision taken in 2008 by its parent company Popular Inc., from 2009 e-Loan stopped direct mortgaging. It now continues to cater savings account, car loan and also certificates of deposit.

This financial institute has not only got renowned and won accolades for the consistent form of operation, but it is also FDIC insured. This means opening any account with this bank guarantees the investor of an insurance of up to 250, 000 dollars. There are absolutely no fees charged for conducting any services. Moreover, the entire process can be carried out online, which is quite quicker that depositing and filling application forms in person through a check. This also means that the cash is electronically transferred, application filled immediately and notification set to the source of need without hindrance and without wasting any amount of money. Privacy policy of e-loan about such transfers is absolutely strict too.

In CD certificate of deposit, e-loan has different CDs available. It starts from 1 month term and continues to 6 year plan. Different term CDs have different APT. The ownership can be individualistic, through a trust or held jointly. Depending on amount and the plan, the rate of interest varies too. The minimum amount that can be kept for CD certificate of deposit is $10,000 for e-loan. The rate for interest for 1 year is 1.05 percent. In 2 years CD, it is 0.90 percent and for 3 years it is 1.60 percent. From such rates, it is quite evident that e-loan has reason enough for becoming popular.

E-loan is also one of the most trusted financial company for CD certificate of deposit and other accounts because of the awards it has won for different categories. In 2005 e-loan ranked first in customer respect and as a company protecting customer privacy. Through years, it has transformed its foundations to become stronger and more popular. Its CD rates for both mid term and long term deposits are competitive and reasonable as well as it has kept it so during trying times as well.

It is possible to open CDs online with Mostly, CDs are funded by ACH transfer from checking or from savings account, which is extremely secure.  After maturity, investors can specify the instructions of what should be done with the matured money. Online maturity form is available online with maturity instructions. This reaches the investor before the end of his/her term of maturity. It is possible to enter the instructions about the maturity by the investor 60 days prior to their date of maturity. Once the instructions are entered one cannot change them.

If instructions are not send to the service center before maturity, the CD certificate of deposit is automatically renewed at the available rate. When the fund is send from external account, it is necessary to verify it at least 5 days prior to date of CD maturity. In case, investor is late or fails to do any of the verification processes, the CD automatically renews. In case the external account has been closed, the investor would need to link another account into the CD account in order to continue the term.

ING Direct Certificate of Deposit

ING Direct is an online bank that provides savings account and also investment options such as certificate of deposit and others. This is 22nd largest bank of U.S., which is headquartered in Wilmington, DE and has two branches. Most of its businesses are conducted online. In case of best CD rates, ING Direct is frequently suggested by experts. It name also features amongst the charts of best CD rates on all CD rate comparison lists. Not only is this bank FDIC insured but it offers competitive rate of interest.  So, in case of an account or CD certificate of deposit with this bank, the depositor would have an insurance of about 250, 000 dollars. This is given per account.

In certificate of deposit, ING Direct has best certificate of deposit rates available. In fact, ING Direct is considered a bank that offers best rate available in the market for added value 1 year CDs. Rates of most of other national and regional banks is lower than them. The one year certificate of deposit has two different products. One is the ‘Added Value certificate of deposit. The other is ‘non-added value’ certificate of deposit.

The availability of high rates to it 1 year added value CD certificate of deposit is an effort from ING Direct to attract more investors towards their bank. ING Direct in this product will hold the money for one year without any withdrawals. For ‘added value’ CD, fund can be added from external source. Based on the amount deposited the rates of such fund is also higher. So, investors have bigger savings than ‘non- added’ CDs. The rate of APY paid over the amount deposited is 2.25 percent. Another account of CD certificate of deposit, which is known as non-added value has rate of interest of about 2.10.

Huge advantage of investing with the ING Direct is their awesome customer service. Since every CD has a maturity date, so prior to maturity and about 35 days ahead, a notice is send to the investor. The account holder or the authorized signer signs for his/her account online and sets the maturity instructions. Either they can renew the CD and place it to a new term of CD certificate of deposit or they can link it with their checking or savings account.

In case the investor does not provide any instruction, on the maturity date, CD with accrued interest automatically renew on whatever rate of interest is available in the market at that time. However there is grace period of 10 days as well. During this time, investor can add more funds. It is also possible to change terms. One can redeem the full value (principal with interest) without paying any penalty. In order to instruct ING Direct about what investor wants, they have to log in with their PIN, customer number or ID and then provide the maturity instructions, which is available under ‘change’ of ‘account maturity’ under ‘account maintenance’.

Currently, the average rate of interest of available CD certificate of deposit is 1.165(average) from other competitors. However, this rate is higher than certificate deposit terms of other available products of ING direct. The long-term 5 year annual percentage yield of CD from ING direct is 1.75 percent. For 6 month CD, it is about 0.75 percent. In 3 year plan it is 1 percent. Starting from 6 to 60 months, there are different types of CDs available with this renowned FDIC insured online bank.

Comparing Fixed vs Variable Rate Certificate of Deposit

Certificate of deposit is an agreement between the investor and the financial institute, where both agrees on certain rate of deposit to keep the amount locked up for a length of time. Certificates of deposit are available from bank, credit union, financial institute and such others. The investor has no access to the money they deposit. Simultaneously, if they decide to withdraw the money for any reason penalty is charged from the interest or interest and amount of deposit. There are different types of certificate of deposit available. Based on interest, there are two basic categories. One is fixed rate of interest and the other is variable rate of interest CDs.

Fixed rate certificate of deposit has rate of interest which is same throughout the entire tenure of investment. There are different types of fixed rate CDS, like liquid CDs, callable CDs, brokered CDs and traditional CDs. Liquid CDs are those, where the amount of money can be accessed after a period of time of the start of the tenure or before the maturity date. Callable CDs are those that can be terminated before maturity by the financial institute.  Brokered CDs are bought from deposit brokers while traditional CDs are same as any ordinary CDs with the general guidelines.

In variable rate certificate of deposit, the rate of interest changes during the entire term of deposit. The rate depends on consumer price index, the prime rate, market index or the treasury bills. The amount that is paid out based on the difference of the final index and the beginning index difference. There are different types of variable certificates of deposit too. For instance, there are step up and bump CD. In step up CD, the rate of interest increases once. In bump up CD the rate of interest increases more than once depending on agreements.

Individuals who wish to go for low risk of investment should go for fixed rate of interest or the more traditional form. Most important to keep in mind when purchasing the CDs is to get it from insured banks or financial institute. Uninsured CDs has high rate of interest. However, in case of any failures or close down, the investor might not be able to have the money which he/she will get from the insurance coverage of NCUA or FDIC.

Initially, CDs were always offered at fixed rate of interest. These meant, even if the economic conditions are going downward; the interest rate remains the same. Only disadvantage of having a fixed rate of interest is that the investor would miss out on higher profit yields, if it becomes available in the market. In variable rate certificate of deposit, the conditions are exactly opposite. If the economic conditions are favorable, the investors reap the benefit. However, if the conditions are not favorable, the interest rate will go down.

The variable certificates of deposit have an advantage over the fixed rate of interest. This advantage is that banks offer a higher rate of interest than fixed rate certificates of deposit. This is the reason, even for the unpredictable nature in these certificates of deposits; a lot of people prefer variable CDs, rather than traditional fixed rate CDs. The profit for variable rate certificate of deposit is more, if the market conditions stay good. However, the investor got to agree to take the risks.