Best CDs for Retirees

Knowing which are the best CDs for retirees is dependent on their plans for the future. At the present time, with the Federal Reserve keeping the interest rates artificially low, investing in CDs for the long term or with long term certificates is not a very wise move. The main reason is that with the long term rates so low, inflation will negate any earnings.

Finding the best CD rates for your hard earned money is tricky. Establishing a CD ladder is the best way to take advantage of any rate change while earning what is presently being offered. This way, there would be a constant flow of CDs maturing at predetermined intervals.

If you are just starting to form a CD ladder, then you would need to purchase a 1, 2, and 3 year CDs. This 3 rung ladder would have a CD maturing every year so access to your money would be readily available without any penalty. When the CD matures, then you can reinvest it in another 3 year CD or spend it. Reinvesting it would keep the ladder going.

This same concept can be done with a 6 month, 1 year, and 18 month CD to have even more access to your funds. This would give the opportunity to invest in a better rate CD as soon as the rates start to increase.

When looking for which institution to invest with, shop around. Many banks and credit unions have good rates, but one generally stands out above the other rates with each financial institution. With a CD ladder, the CDs on each rung can be with a different financial institution. Do not have the mindset to stick to just one bank because you “have always done your banking with them.” If you do so, you could miss out on better earnings through better rates offered by other banking institutions.

Shop around for the best CDs for retirees. It is your money, get the most from it.

For additional resources about CDs on this website about another state, please view Iowa CD Rates. On our sister site, there is Best Bank Bonuses for an additional resource on a popular financial institution.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name. Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

Posted : July 7th, 2010 by Douglas

Tags: bank cd rates, Best CD Rates, CD rates, investing, money, retire, retirees

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Columbia Bank CD Rates | Best CD Rates Says:

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