0
If you are like many other investors, you enjoy the benefits of investing in high yield investments like the Stock Market and real estate. However, you also want to diversify your investments with a few lower risk options as well. Low risk investments typically include savings accounts, money market accounts and CDs. When it comes to the rate of return on low risk investments, the low risk is reflected in the return. While you can expect a lower rate of return on such investments, you can still grow your money more quickly with 9 month CD rates in comparison to savings accounts and money market accounts.
Why Choose a Short Term CDThere are many term lengths available for you to choose from when you buy a CD. Generally speaking, a longer term length will provide you with greater yield. However, there are sound reasons why a shorter term may be more advisable. Consider, first, the possibility that you may need to draw on this money at some point. You may already have an emergency savings account funded, but a CD may be the most liquid asset you own behind your emergency savings account. If you have a well-funded savings account, it may have a balance that includes six to 12 months of your expenses. A 9-month CD is a great complement to your savings account, and it allows this amount of money to grow more quickly than it would in your savings account.
Maximizing Your ReturnYou may be able to maximize your return on your CD investment by choosing a longer term. However, another way you can maximize your return is to invest more money in your CD. Consider researching the different investment brackets available. A slight increase in your investment may allow you to enjoy a greater return. For instance, if you planned to invest $2,000 and 9 month CD rates increase at $2,500 and $25,000 deposit amounts, you may consider investing an additional $500 to enjoy the next highest rate available. While you do want to diversify your assets and enjoy the benefits of having some money in low-risk investments, you also may want to keep a large portion of your money in higher yield investments to enhance growth. Keep this in mind when considering how much money to invest in a CD.
What else can I help you with?
How do you calculate year-to-date percentage growth in sales?
Assume you have the growth rates for each month, then you: ....
How big is a 1-month-old stach?
A 1-month-old mustache is typically small and may not be very noticeable. It can vary in size depending on genetics and individual growth rates.
How does economic growth impact interest rates?
Economic growth typically leads to higher interest rates as increased demand for goods and services can create inflationary pressures. Central banks may raise interest rates to curb inflation and ensure stable economic growth. Additionally, stronger economic conditions can lead to greater borrowing and investment, which also puts upward pressure on interest rates. Conversely, during periods of slow growth, interest rates are often lowered to stimulate economic activity.
How do savings promote economic growth?
Savings, unless they are in a matress, leads to greater availability of funds to lend, which leads to lower interest rates, which leads to greater borrowing for business investment, which leads to business expansion, which leads to more employment, which leads to economic growth.
What are factors that help predict population growth rates?
Birth Rates, Growth Rates, and Something else
What is the average weight of a 9 month old male?
Because of growth rates and spurts, the average weight of a 9-month old baby boy will vary. The average 9-month old boy should weigh at least 20 pounds, however.
How do savings and investments influence economic growth and prosperity?
They promote economic growth by adding money into the economy, which is then spent on goods and services. That leads to greater availability of funds to lend, which leads to lower interest rates, which leads to greater borrowing for business investment, which leads to business expansion, which leads to more employment, which leads to economic growth.
How do demographers figure out population growth.?
Demographers figure out population growth by comparing birth rates and death rates.
Does high rates of economic growth always stabilize the economy?
No, in essence a high growth rate is good but as a result high growth rates will lead to a cession. It is part of the business cycle. To stabilize an economy growth rates should slow and steady
What is the relationship between interest rates and economic growth?
The relationship between interest rates and economic growth is that lower interest rates typically stimulate economic growth by encouraging borrowing and spending, while higher interest rates can slow down economic growth by making borrowing more expensive.
What is the rates and sequence of embryonic and foetal growth?
Type yoWhat is the rates and sequence of embryonic and foetal growth?ur answer here...
What Variations in rates of growth for different parts of the body are reffered to as?
Asymmetrical growth rates between different parts of the body are referred to as allometric growth. This can lead to variations in size and proportions as different body parts grow at different rates.
