One Month CD Rates, More Liquidity

One month CD rates are something you need to familiarize yourself with if you are thinking about purchasing a certificate of deposit in the near future. A CD can be an excellent way to invest your money for a fixed period of time. It is a safe investment and therefore a wise choice for conservative individuals. It is also a very effective way to save that will earn you more interest than a savings account.[br]

One month CD rates are something you need to familiarize yourself with if you are thinking about purchasing a certificate of deposit in the near future. A CD can be an excellent way to invest your money for a fixed period of time. It is a safe investment and therefore a wise choice for conservative individuals. It is also a very effective way to save that will earn you more interest than a savings account.[br]

If you decide that you want to purchase a CD then you can buy it at your bank, your credit union or a brokerage firm. Some financial institutions have rules that require you to physically come into the bank in order to open an account for a CD. Others are more flexible and permit their customers to start the account online. Find out what you can about this before you decide which financial institution you wish to purchase the CD from. While you are at in, inquire about the financial group’s one-month CD rates.

If you purchase a certificate of deposit then one of the biggest advantages is that you will earn a higher rate of interest than if you decide to save your money in a money market account or a savings account. The disadvantage to CDs as investments is that they do not come with any liquidity. What this means is that you have tied up your money for the length of the CD term and therefore can do nothing with it until it is all over with.[br]

One month CD rates are something you need to pay close attention to. Be aware that if an emergency should arise in your life then you should not look to the certificate of deposit to provide the funds you need. It is never a good idea to cash in a certificate of deposit before it has reached full maturity. You will lose interest if you do this and you are also likely to lose some of your principal. Federal law has a mandate that when a CD is cashed early there is supposed to be a minimum penalty of seven days simple interest imposed on the amount of money withdrawn.

If you are knowledgeable about one month CD rates then you are less likely to think about cashing out before the end of the CD’s term. Be aware that banks are also permitted to set their own penalties for the early withdrawal of a certificate of deposit. This is something you want to avoid at all costs so put a great deal of thought into how much money you want to put in a CD account and for what span of time.