Lunch Break Investing » kid friendly http://www.lunchbreakinvesting.com Investing ideas so easy you can do them on your lunch break! Fri, 23 Jul 2010 02:01:36 +0000 en hourly 1 http://wordpress.org/?v=3.0 4 Tips For Buying a Certificate of Deposit http://www.lunchbreakinvesting.com/archives/105/4-tips-for-buying-a-certificate-of-deposit/ http://www.lunchbreakinvesting.com/archives/105/4-tips-for-buying-a-certificate-of-deposit/#comments Thu, 14 Jan 2010 08:00:35 +0000 topher http://www.investorbeginner.com/?p=105 Certificate of Deposit (CD) is one of the easiest and safest ways to earn interest. With a little work on your part, small amount of time, and a little cash you can be earning interest with your hard earned money.

1. How much and how long?
These are your first decisions. Depending on how much and how long will determine your APR (annual return of premium). Maturity time can range from 6 months to 60 months. Remember, you will be penalize if you cash in before the maturity date. Only deposit money that you don’t need during your allotted time period.

2. Compare rates
Check your local banks web sites. Most list the current rates and a few have helpful calculators to show how much you can earn. Some have a minimum amount to open an account. You can also use web sites like Bankrate.com or a brokerage service like Scottrade.com.

3. Check the bank for FDIC deposit insurance
The FDIC insures your CD up to $250,000. If the bank is not FDIC insured, DO NOT buy a CD from them. You can LOSE all your money. Check FDIC.gov for more information.

4. Buy and enjoy earning interest.

Got other tips to share on CD’s, leave a comment!


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