| |
| |
|
|
Day Trade Blog - Ivesting Information Learn to invest in the stock market, invest like a pro daytrader swing trading penny stocks |
|
|
|
Looking For a Safe Investment? Try a Certificate of Deposit
If you are looking for a safe investment and you have between $100 -$1,000 to invest, you should consider a certificate of deposit or CD. When purchased through a bank, CD's are federally insured up to $100,000. When you invest in a certificate of deposit, you are lending your money to the bank for a set period of time at a fixed rate of interest. At the end of that time period, the bank pays you back your investment with the interest you've earned. The annual interest earned is reflected by the annual percentage yield or APY. There are several details to consider before investing in a CD. First, find out when the CD will mature? Banks offer certificates of deposit with maturities ranging from 3-months to 10-years or more. Figure out how much to safely invest and how long you feel you can leave that money alone so that it earns interest. Also, make sure you get the maturity date in writing. Second, you'll want to know the annual percentage rate (APR) you'll earn on your investment. Investing larger sums for longer terms usually earns the best interest. However, even a small investment can earn you higher interest than a traditional passbook savings account. Next, find out how the interest is compounded - daily, monthly, or annually? Daily compounding is best because it earns you more interest. You can shop for the best CD rates at www.bankrate.com or check with your personal banker. Shopping on the internet, I found rates for a $1,000 1-year CD in my local area ranging from 2.96 to 3.97 APR and a 3.00 to 4.05 APY respectively. So if I invested $1,000 at 2.96 APR, at the end of 12 months I'd get paid $1,030.00 by the bank (figures computed with interest compounded monthly). That same $1,000 invested at a rate of 3.97 APR would return $1040.43. Interest rates are usually locked in for the term of the CD, although some banks allow you to take advantage of higher interest rates by converting your CD. This type of CD is called a "step up" CD. Generally, banks will only let you "step up" once during the term of the CD. What happens if you withdraw your money before the certificate of deposit matures? Your bank will impose an early withdrawal penalty, which can vary depending upon the maturity date and the amount invested. It's important to invest only money you can truly afford to leave alone for the term of the CD. As with any investment, make sure you understand all the terms, fees, and any penalties before you purchase. Copyright 2005, http://www.yourfreecreditreportnow.com James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book "IDENTITY THEFT- How To Avoid Becoming the Next Victim!" and other money-saving bonuses by visiting http://www.yourfreecreditreportnow.com
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Critical Investors Business Daily Responsibilities - If not Followed Could Cost You Millions! When thinking about the investors business daily responsibilities in today’s market environment, the best remedy for this situation is for you to get more involved in your own investing decisions.The problem is that most individual investors do not have the knowledge, resources, or time to spend doing their own research, stock selection, execution, and position management. Looking For a Safe Investment? Try a Certificate of Deposit If you are looking for a safe investment and you have between $100 -$1,000 to invest, you should consider a certificate of deposit or CD. When purchased through a bank, CD's are federally insured up to $100,000. Options Education: Financing the Calendar! As a trader, one of the key things that I try to consciously do is to cultivate my instincts by talking with other traders and investors as often as possible. It still amazes me how large the divergence of opinion that exists regarding what people believe will unfold as we enter the new millennium. Six Principles of Successful Investing 1. Begin investing immediatelyProcrastination is the number one enemy of investing. Why You Need To Buy and Sell Gold Coins (Part 6) Pre-1933 Gold Outperforms Today's Gold Bullion.. Scots Beat Yanks in China Bank Deal With visions of an ATM in every neighborhood in China, foreign banks and investment firms are queuing up to join the "China Club."Moneybags CommunismThe initiation fee for the "China Club" is straightforward and pure moneybags communism: invest cold hard cash in its largely insolvent state-owned banks, put your reputation on the line, reassure nervous foreign investors about upcoming IPO's, and share your risk management, corporate banking and other expertise with eager Chinese executives. Investing in World Markets There are many different ways to invest in world markets: stocks, bonds, mutual funds, options, commodities or currencies. Sometimes people refer to these options as investment vehicles (or method of investment). Bad News - Why The Financial News Media Can Cost You Money! The communication innovations we have around us today like the internet, financial newspapers, and special interest television channels focused on investing like CNBC are a high speed pipeline of nonsensical chatter. All these sources of information mean that there is no shortage of media people trying to answer our questions about the stock market and specific stocks. Investing for Retirement - Not an All or Nothing Play In 1519, Hernando Cortes, beached on the shores of unexplored Mexico, made a fateful decision: he would burn the ships he and his men arrived in and attempt to overthrow Montezuma and the mighty Aztec empire. The decision was risky. Success Trading: More Basic Terminology for New Traders One important aspect of trading the markets is to understand how to feel it's overall pulse. In the stock market, this is measured by measuring the movements of selected stocks across various sectors to let us know how the market is doing in general. Can Your Annuity Do This? Many people buy annuities according to their agent's recommendations. However, many people do not even know what they own. Get Wealthy With the Rule of 72 When it comes time to retire how many people would like tohave a nest egg that is 2 or 3 or even 4 times larger thanwhat they have? With an answer so obvious allow me toexplain how you can make it happen for yourself.First we'll explain the Rule of 72. Making It Second Nature Not long ago I was laying on my son's floor throwing one of his toy balls back and forth in the air to myself and I had a strange revelation. I noticed that as I threw the ball up in the air my left arm automatically started to move to where the ball was going to come down. Trading Systems A trading system consists of a set of rules for viewing markets and making trades. The advantages of trading systems can be hidden when they become associated with trading platforms involving trade order submission and processing. Protecting the Tax Advantage of Your Deferred Compensation The American Jobs Creation Act of 2004 imposed strict new rules on non-qualified deferred compensation plans. Beginning in 2005, deferred compensation programs that are not in compliance with the new rules may be taxed as wages, slapped with a 20% excise tax, plus charged an interest penalty. Wit and Wisdom on Money, Wall Street and Success - Part #1 I love to collect quotes as they concisely promote a philosophy which is readily understandable.In my 25+ years of investing I have collected hundreds of quotes related to Wisdom, Wall Street and Success. The Biggest Oil Opportunity in the World - And How You Can Profit From It Where is the second biggest deposit of oil reserves in the world?In the oil sands region of Alberta, Canada. Oil sands are a thick, viscid mixture of bitumen, sand, clay, and water. Rules of Simple IRA Your Business Needs to Know A Savings Incentive Match Plan for Employees plan, better known as a SIMPLE plan, is an IRA-based retirement plan available to employers with fewer than 100 employees.Under a SIMPLE IRA plan, an employee can contribute a portion of his pay to his SIMPLE IRA account. Mutual Fund Returns May Not Be As They Seem! Arthur Levitt, during his tenure at the SEC, experienced many cases where the non-indexed mutual fund manager bought shares for their own accounts before the fund bought the shares. The fund's purchases drove up the price of the stocks and the fund manager's made a killing on the deal. Reasons For Joining An Investment Club Whether you're a novice investor or an experienced stock picker an investment club may be beneficial to growing your investment portfolio. This article explains what an investment club is, why you should have an investment program and finally why you should join an investment club.
|
| home Day Trade Blog | site map |
| © 2006 Day Trade blog investing and stock market resource |
