What are Short Term CDs?

Short term CDs are certificates of deposits with timed deposit periods one year or shorter.  While there is no clear delineation between a short term cd and a long term cd, I draw the line at 12 month CDs.  If a certificate of deposit has a term great than 12 months, I would categorize it as a long term CD.

Every bank has different timed deposit periods for their short term CDs.  However, 1 month CDs, 3 month CDs, 6 month CDs, 9 month CDs, and 12 month CDs are the most common periods for short term CDs.

Why Invest In Short Term CDs?

Many investors ask why you would buy a 6 month CD with 2% interest when you can buy a 36 month CD earning 3% interest.  There are two reasons for why invest in short term CDs.  The first reason to invest in short term CDs is that you need access to your money in the near term.  If you purchase a 36 month CD, you will not be able to access your money without paying a withdrawal penalty for the 36 month term.  However, if you invest in a 6 month CD you will be able to withdrawal your money within a much shorter period of time.

The second reason for buying short term CDs is that CD interest rates might be higher in 6 months.  By buying a short term CD you can move your money into a higher interest CD in 6 months or take advantage of another investment opportunity at such time.  With CD rates being at all time lows, locking into a long term CD at this time could be foolish.  However, having said that, who knows whether CD rates will rise in the future.

When looking to invest in a short term CD, it is important to find the best CD rates for short term CDs.  Also compare the short term CD rates of 6 month CDs versus, 9 month CDs versus 3 month CDs.  Also, you have to compare bank CD rates because no two banks offer the same CD rates.  Through comparing bank CD rates, you will find the best short term CD with the right interest rate and the rate length term.  At this time I would check out GMAC CD rates, Wells Fargo CD rates, and your local CD rates.  Sometime local CDs will have the best short term CD rates.

Related posts:

1. Everbank CD Rates
2. 24 Month GMAC CD Rates
3. Wachovia CD Rates

In order to qualify for this 3.25% APY CD interest rate, GMAC requires a minimum deposit of $500.  As with most CDs, you cannot withdrawl the money that you deposit in this certificate of deposit until the 3 month term has expired.  If you do want to withdrawl before the end of the CD term, you will forfeit the interest.

GMAC CDs are backed by FDIC insurance up to the FDIC insurance limits.  Therefore, these GMAC 3 month CDs are a safe place to put your short-term savings.   So go check out these 3.25% GMAC 3 month CD rates.

Related posts:

1. 24 Month GMAC CD Rates
2. GMAC CD Rates
3. GMAC CD Rates Reviewed

GMAC CD interest rates are very good.  In addition to the GMAC 24 month CD, GMAC 12 month CD rates are 4.25% APY.  And, the GMAC 9 month CD rates are 3.80% APY.  All and all these are great CD rates.

GMAC requires a minimum deposit of $500 to purchase a certificate of deposit.  A $500 minimum deposit for a certificate of deposit is about as low as you will find.  This is a good minimum deposit.  Many banks will charge $1,000 to up to $25,000 as a minimum deposit.

When purchasing a CD make sure that you can go without withdrawling your money for the entire term of the CD.  IF you withdrawal your money early, you will pay a substantial fee.  The fee is so high that you would be better off just settling for the lower interest rates offered by an online savings account.

Investing in bank CDs is great way to make the most interest on your money.  Make sure your bank is FDIC insured.  By the way, the GMAC CDs are FDIC insured.  I would never buy a certificate of deposit that was not FDIC insured.

So, check out the 24 month GMAC CD rates and the other GMAC certificates of deposits.  GMAC usually updates its CD rates every month.  Check back here because we will review the December GMAC CD rates in a future article.

Related posts:

1. 3.25% GMAC 3 Month CD Rates
2. GMAC CD Rates
3. GMAC CD Rates Reviewed

If you are looking for a short term place to save your money and earn a high interest rate, you have to check out these Everbank CD rates.  In order to open a certificate of deposit account, Everbank online banking requires a $1,500 minimum deposit.  This $1,500 minimum deposit is a low minimum amount that should allow most CD investors to purchase a Everbank CD.

Everbank CDs also come in terms of 9 months through 60 months, but the CD interest rates don’t really go up that much at these longer periods.  In fact, the 5 year CD has an interest rate of 4.54% APY.  That is only 0.31% higher than the 6 month Everbank CD.  Unless you really want to buy a long term CD, in our opinion you are better off buying a short-term Everbank CD.  The 3 month and 6 month Everbank CD rates are an excellent choice.

For those of you not familiar with Everbank, Everbank Direct is one of the pioneers of internet banking.  Everbank was started in Jacksonville, Florida, but now does banking across the United States through its everbank.com website.  Everbank online banking is a robust banking site that provides high interest savings accounts, free Everbank checking accounts, and some of the best cd rates.

If you are in the market for a short-term certificate of deposit, the Everbank CD rates on its 3 month CD and 6 month CD are the best cd interest rates in the United States right now.  Check out the everbank.com site for more information regarding Everbank CDs.

Related posts:

1. Everbank CD Rates Review
2. Everbank CD Rates – Best 5 Year CD Rates
3. 4.00% 12 Month Wachovia CD Rates