The last low point for Best CD Rates was in 2003 when the average 6 month CD was earning an APY of 1.683, the 1 year was earning an APY of 2.054% and the 2 year CD was at an APY of 2.507%.
At the end of January 2011 the CD Rates were falling and they still are. The last week of January the 6 month CD was at 0.427%. Since that time it has continued in its downward movement to its present location at 3.19%.
The 1 year CD is following suit being at 0.676% APY and now dropping to 0.671%. The 2 year CD was at 1.008% and has dropped to an APY of 1.02%.
All of these current rates are far below the rates that were posted in 2003 and that bottoming out of the CD roller coaster. This has all been caused by the FED artificially keeping the interest rate low. This was done a couple of years back to give the banks the incentive to make loans.
This policy by the FED has not worked as expected. Today the banks are increasing their fees they charge their customers and are racking in record profits. They have also tighten their grip on the loans they were suppose to give out to the American consumer for receiving the tax payer funded bailout.
All American know that big business influences the policies of the federal government. What most of us did not realize until now was just how much influence they actually had. America will see a rise in CD rates once the federal government begins to represent the people again and not the interest of the few that run the large financial institutions and other large corporations. This will bring an end to the average CD rates drop and start them to rise again to respectable levels.
For additional resources about CDs on this website, please view Best Oklahoma CD Rates. 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.
To know more about the Citibank CD Rates, Best CD Rates, PNC CD Rates, highest cd rates, Chase CD Rates, you must visit - http://bestcdratesinformation.typepad.com
Thursday, February 17, 2011
Wednesday, February 2, 2011
Brokered CD's an Informative guide
What are Brokered CDs? This is a question many investors are asking in their quest to obtain the maximum amount of earnings through this conservative type of investment. As the name suggests, a brokered CD is purchased through a broker or third party other than a bank or credit union.
With a typical CD that is purchased through a financial institution, the stated CD rates for that establishment are all that is available at that place of business. With a brokered CD, the investor has a variety of choices from many different financial institutions that your broker is currently handling. Unlike bank issued CDs, the brokered CD can be bought and sold on a secondary market before their maturity term has expired.
The CDs purchased through a broker do allow for a wider variety, but as an individual you can go to these financial institutions and make the same purchase without having to pay the broker’s fee. This is now possible through the online websites of most financial institutions.
The ideal situation is when a broker has negotiated a better than advertised rate with a financial institution that includes a large sum of money for an extended period of time. They then break this CD into smaller CDs and sell them to numerous investors. If these brokered CDs need to be sold before their maturity dates, this is done on the secondary market where the value is generally lower than the face value.
If you decide to purchase a brokered CD, have your broker give you examples of CDs on this secondary market for the best possible deal. Also, look into the rating of the financial institution that is issuing the CD. If the establishment has a rating below 4 stars, selling the CD will be at a discount because of the conceived higher risk.
What are brokered CDs is that they are another mechanism for investment by individuals and businesses to earn a profit. Before placing a deposit in one, please read all the fine print and know the reputation of the broker. This could save you from losing part of your principal.
To know more about the Citibank CD Rates, best cd rates USA,Best CD Rates, PNC CD Rates, highest cd rates, Chase CD Rates, you must visit - http://hsbccdrates.wordpress.com/
With a typical CD that is purchased through a financial institution, the stated CD rates for that establishment are all that is available at that place of business. With a brokered CD, the investor has a variety of choices from many different financial institutions that your broker is currently handling. Unlike bank issued CDs, the brokered CD can be bought and sold on a secondary market before their maturity term has expired.
The CDs purchased through a broker do allow for a wider variety, but as an individual you can go to these financial institutions and make the same purchase without having to pay the broker’s fee. This is now possible through the online websites of most financial institutions.
The ideal situation is when a broker has negotiated a better than advertised rate with a financial institution that includes a large sum of money for an extended period of time. They then break this CD into smaller CDs and sell them to numerous investors. If these brokered CDs need to be sold before their maturity dates, this is done on the secondary market where the value is generally lower than the face value.
If you decide to purchase a brokered CD, have your broker give you examples of CDs on this secondary market for the best possible deal. Also, look into the rating of the financial institution that is issuing the CD. If the establishment has a rating below 4 stars, selling the CD will be at a discount because of the conceived higher risk.
What are brokered CDs is that they are another mechanism for investment by individuals and businesses to earn a profit. Before placing a deposit in one, please read all the fine print and know the reputation of the broker. This could save you from losing part of your principal.
To know more about the Citibank CD Rates, best cd rates USA,Best CD Rates, PNC CD Rates, highest cd rates, Chase CD Rates, you must visit - http://hsbccdrates.wordpress.com/
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