Online CD Rate Comparison

The volatile state of the nation's financial markets has investors scrambling for safer places to put their money. You've probably heard a few of the sobering stories about how people very near retirement age have lost 40 percent or more of their entire portfolio due to the economic downturn. Don't let that happen to your nest egg. The best way to protect your money is to diversify and to invest in relatively secure instruments like certificates of deposit.

A certificate of deposit is safer than other securities because it is insured by the FDIC. That means if the bank holding your deposit fails, the United States government will reimburse you, making this type of investment as risk-free as they come. The way you make money is by earning interest on your deposit, which is why it's important to do some CD rate comparison research before you tie up your cash.

It would be a huge mistake to skip over the CD rate comparison step because this is what determines whether or not you'll earn a good return on your investment. Yes, you'll receive interest payments regardless of which rate you end up with, and you'll get your principal back at the end. But if you get locked into a low annual percentage yield (APY) while overall rates in general trend upwards, you'll obviously hurt your bottom line.

Fortunately, the internet makes CD rate comparison a pretty simple task. All you have to do is get online and search for a few websites that specialize in this sort of thing. There are a bunch out there, so it should take a minute or two at the most to arrive at a suitable site. A majority of these sites provide a CD rate comparison table right on the front page, beginning with the most favorable rates at the top and working down towards the lower end of the spectrum. You can often compare rates based on different criteria, such as deposit amount or term (three months, six months, one year, etc.). If you know how much capital you want to invest and for how long, all you have to do is select the certificate of deposit that offers the best APY.

One of the great things about online CD rate comparison charts is that they include numbers for banks nationwide. This gives you the best chance of finding the highest yield for your investment dollars and doesn't limit you with geographical constraints. All financial institutions are capable of conducting electronic transactions these days, so you're just a couple of mouse clicks away from the strongest rates.

When the markets are unstable, it would be wise to pull back some of your riskier ventures and make more prudent investments. Start with reviewing CD rate comparison charts, and then go ahead and invest in some of the safest securities out there!