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.

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1. Everbank CD Rates
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3. Wachovia CD Rates

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.

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Why find the best 9 month CD rates?  The 9 month cd is a great way to buy a short term cd, but still gets savings interest rates higher than savings accounts.

Citibank 9 Month CD Rates

The Citibank 9 month CD rates are some of the best cd rates in the United States.  The current Citibank CD rates on its 9 month CD are at 3.75% APY.  Finding Citibank 9 month CD rates at 3.75% made us excited.  Most towns have a Citibank bank branch near them.  So if you want to find the best 9 month CD rates, you will be able to buy a 9 month CD right at home.  That is a pretty convenient way to get the Citibank 9 month CD rates.

ING DIrect 9 Month CD Rates

Most people when think of ING Direct think about its Orange Savings Account.  But ING Direct also sells ING Direct Orange CDs.  And in our search for the best cd rates, it turns out the ING Direct 9 month CD rates, are some of the best cd rates.  The ING Direct 9 month CD rates are also at 3.75%.  SInce the ING DIrect savings accounts interest rates have fallen, buy an ING Direct 9 month CD is a great way to make up for this decrease in interest rates.

We hope that this article has helped you to find the best 9 month cd rates.  Please subscribe to our site so that you can always find the best CD rates.

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