CDs

Years of low interest rates have provided underwhelming options for investors seeking Certificates of Deposit (CDs) as a relatively safe component of their portfolio. Yields above 1% are hard to find and often require tying up your money for a lengthy period. Even with a laddering strategy, the poor yields may not be worth the
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Who needs scratch-off lottery tickets and Powerball? Some credit unions are offering a program that allows you to win prizes as you save your money, at no risk to you. Not surprisingly, the program is called Save to Win. The program was developed in Michigan in 2009 as an innovative way to encourage lower- and
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CDARS may sound like trees you might find in the FREST – but it actually stands for Certificate of Deposit Accounts Registry Service, a method of insurance for very large deposits that is backed by the Federal Deposit Insurance Corporation (FDIC). CDARS exists primarily because of the limits on FDIC-insured accounts. FDIC limits for CDs
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Treasury Inflation-Protected Securities (TIPS) are securities issued by the government that adjust for inflation based on the value of the Consumer Price Index (CPI). Unlike other fixed-income investments, the face value (and therefore the interest income) varies over time based on the amount of inflation adjustment. This makes TIPS a good choice for a laddering
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The Federal Deposit Insurance Corporation (FDIC) is a U.S. Government regulatory agency that has three primary purposes: Insure bank deposits of member banks; Assist with banking regulations; Deal with failing banks. Let’s look at each of these jobs in a little more detail. Deposit Insurance The FDIC does insure bank deposits in
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Investors have long valued Certificates of Deposits (CDs) as a low-risk savings tool. Most types of CDs are straightforward; the more you deposit and the longer the term, the higher the interest rate and return. In addition, many come with insurance from the FDIC. In today’s investment environment, historically low interest rates have made CDs
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CD or Savings Account: One, Both, or Neither? Finding an investment product that best meets your unique needs can be confusing and frustrating. There are so many out there, including mutual funds, money markets, stocks, bonds, and annuities, to name a few. Books have been written comparing and contrasting each one of these. This article
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