Although the economy is beginning to show signs of recovery, I'm still a bit wary about putting my money back stocks just yet. I think there's a long way to go before the market becomes stable enough to justify further investments. But at the same time, I don't want to just keep my money in a savings account where it earns minimal interest. I believe a good compromise for me would be to purchase a few certificates of deposit until the financial markets stabilize, which is why I'm currently checking into the top CD rates available.
Unless I'm getting the top CD rates, there's really no point in using this investment vehicle. Why tie my money up for anywhere from 6 months to 5 years or more unless I'm going to get a substantial return? That wouldn't make any sense at all! Plus, when you add in the fact that the top CD rates are widely published online these days, there's no reason to skip out on the research portion of the purchase. After all, it just means greater profits for me in the end.
There are many websites that give me the chance to compare top CD rates side by side in an easy to read chart. I'll get all the relevant information I need in order to make an informed decision, including the term (which is the amount of time your principal will be tied up), the minimum deposit, the interest rate, and the APY. I have to admit that I didn't really know much about these features prior to beginning my research, but it didn't take long to get at least a basic understanding of what each one means and how each can potentially impact my investment.
After comparing the top CD rates online, I can just go ahead and buy the ones that will offer the largest profits. There are different strategies that I can employ when investing in certificates of deposit. For example, "laddering" is a popular technique in which investors purchase CDs at regular intervals so they don't lock all of their money in at one specific interest rate. That way, if the all the top CD rates go up after a few months, there's still a chance to invest at higher levels. This is something I definitely need to consider doing, since I want to get the most out of my funds without risking a whole lot.
Anyway, I plan to spend the weekend reviewing top CD rates online, and then making a list of four or five potential purchases. Then when the banks open during the week, all I have to do is phone in my orders and fax in the proper documentation to get the ball rolling. It'll be nice to start earning a decent return on my money again!