Extra Cash to Stash in a Savings Account or Certificate of Deposit By Jason P. Jones At Isnare.com Ezine Articles

Though there has been a lot of good news being release recently indicating that we might be starting a recovery, we might have a little more rough spots before the good times are back. The stock market is rallying, housing construction and sales are starting to bottom out and big companies like Citigroup and Wells Fargo reporting better than expected profits, but whether you like it or not, there are still indications that the recession isn’t over. For one, the unemployment rate continues to increase, big companies continue to lay off workers by the thousands. Recently, Goodyear Tire & Rubber announced they will be kicking off 5,000 people. The unemployment rate is now at 8.5 percent and according to experts it will continue to rise up to 10 percent by the end of this year. So my advice is, reign in your money and look for a much safer haven.

In this time of uncertainty, depositing your money in savings account is good. In fact that is the trend. The recession has one positive effect in American’s saving behavior as last month February the savings rates has been pegged at a high of 3.6 percent, telling us that more Americans are saving than spending money. But depositing you money in certificates of deposit or CD is the safest and better choice. The main reason is, you can’t lose. Your deposit is insured by the FDIC by an amount of up to $250,000 and you get better interest rates. Although the interest rates has been going down from an all time high of 5 percent to just 2 percent currently, there are lots of good deals offered around. The low interest rates maybe a bane to depositors but is a boon the general health of the economy. Even at just 2 percent it’s still good as inflation is down to almost zero.

If you think 2 percent is low, then all you need is the proper tool to find the best CD rates online. Did you know that H&R Block Bank is offering a twelve month promotional CD rate of 3.20 percent with an annual percentage yield of 3.25 percent? Dig this; the minimum deposit is $250.00 only. If twelve months is too long for you, how about this? Ameritrade is offering CD rate of 2.97 percent with an annual percentage yield of 3.00 percent for a 3 month certificate of deposit. The minimum deposit amount is $25,000 only. As you can see, if you have the right tools, you can get useful information like these which can guide you in deciding which bank offer the best CD rates.

Visiting websites that specialize in collecting and publishing the latest financial news and market trends would be a good start, such as MonitorBankRates.com. This site has tons of useful information on the financial market that is updated regularly. Another thing you will need is a CD rate table, which shows the different banks and financial institutions, their APY, minimum deposit required and terms comparatively. All you have to do is select the CD type and provide the zip code and the resulting table will provide you an idea which banks offer the best CD rates in the area

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