Certificate Of Deposit Interest Rates
Certificate of deposit interest rates often vary, but remain a good way to make some money with a small investment. CD interest rates will vary depending on the amount of money that is invested. While most CDs require the person to invest at least $500, the maximum amount that can be invested will change from one financial institute to another. The returns will also vary by the terms or period of time the CD is being invested. An individual can choose to keep a CD for a few days and up to five years. Also, percentages will vary based on the company or financial institute that is chosen to handle the investment. Some banks or financial institutes are more competitive and will provide higher returns for customers. Other banks, especially in smaller towns, do not have to worry as much about competition and may provide lower ones on CDs.
Receiving the best percentage will often depend on the amount of money that is invested. There are many different amounts that investors can choose to invest. The lowest that most financial institutes will allow is $500. The maximum amount that can be invested may change from one financial institute to another. Some may allow larger investments with a maximum investment of $250,000. Many other institutes, especially smaller banks and companies may only be able to offer a maximum investment opportunity of $100,000. There are many options for people with certificate of deposit interest rates, especially when the range of investment can fall between $500 and $250,000. Usually, banks offer higher certificate of deposit interest for the higher investments. This is common through most financial institutes that provide certificates of deposit for customers to invest in.
The amount of time of the investment can also change the certificate of deposit interest rates. There are many different periods of time that individuals can choose to invest in a CD. For an individual who wants to make a quick, but small return on their investment, CDs can be purchased for a few days time. Many financial institutes allow consumers to purchase them for a week. The maximum amount of time to hold a CD varies from one financial institute to another. Many will offer a maximum period of five years. Depending on the time chosen, CD percentage rates will vary. The shorter period of time will usually offer much lower returns. For longer periods of investment, higher percentage rates will often be provided to the investor. For an individual putting in the maximum amount of money for the maximum amount of time, there will often be great returns for the investment. On the other side of the spectrum, the individual who deposits the minimum amount of money for the minimum period will probably receive very low rates. At this point, there is probably no reason to invest $500 in a CD for a week. The return on the investment would not be enough to cover the cost of gas for the individual to drive from home to the bank.
For an individual to receive the best CD interest rates, competition may become a factor. In smaller towns, there may be only one or a few financial institutes that can provide CDs for investment opportunities. In this situation, there is very little competition that would require the institute to offer competitive rates for investors. In contrast, larger cities with many financial institutes will have much greater competition, making it necessary for the institutes in larger cities to offer competitive certificate of deposit interest rates for customers pursuing this type of investment. It is very important to take this information into consideration before pursuing an investment in a CD. For someone who lives in a small town but may be able to invest at a larger bank either by traveling a short distance or using Internet banking, it may be worth the effort to pursue these institutes as opposed to the local bank that offers a very low interest rate for CD investments.
There are many factors that go into receiving the best and highest interest rates. The amount of money that is available for investment can change the CD interest rates that an individual may receive. Individuals can usually invest between $500 and $250,000. The higher amounts will often receive much higher interest rates. The amount of time for the investment will also change the rates. Individuals can choose between one week and several years for investments on CDs. The longer period of investment will often mean the higher rate of interest on the certificate of deposit. Another important feature that can change the available CD interest rates is competition. When competition is available, especially with a number of institutes in the same vicinity or city that can offer CD investments, it is much easier to receive a higher and more competitive interest rate on CDs. Investing in CDs can be a great way to receive a return on investment with very little risk. "But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day." (Deuteronomy 8:18)