A Certificate of Deposit, or CD is similar to a savings account in that it earns interest, but different in that you can set a length of time (anywhere from 3 months to 5 years) that you will not touch your savings. The reason you may choose this option is that banks typically offer higher interest rates because they know you are not going to withdraw the money. Banks can then loan your money out, and pay you a higher Bank Rate to allow you to earn even more money.
Most investing options do not require a strong credit score to become an investor. However, there are a few who do, particularly high interest rate savings accounts. Even if they do not require a credit check, it is a good idea to always remain on top of your credit.
Get a free credit report today.
The most difficult, and important, decision to make when investing your hard-earned money is which type of investment account should you choose. Certificate of deposits mature at a fixed rate on a fixed length of time, so you know what you’re getting up front. Mutual Funds may give a higher return, but are risky because they rely on the success of the stock market and the choices of the firm doing the investing on your behalf. Be sure to do your research on Boise Banking Rates before you decide.
Common types of investment income accounts:
- Certificate of Deposits (CDs)
- IRAs
- Savings Bonds
- Stock and Mutual Funds
- Money Market Accounts (MMAs)
No matter what type of investment you decide to make, or even if you’re just seeking more information to help you make the right decision, Boise Banking Rates can help make that decision easier.
Submit your information today to learn more and see available rates for CD rates and investments.
