CD Rates Right for your Cash?

Small businesses are faced with a problem in getting a return on their investments. How can you get a decent return on your money, without compromising its safety? If you go too safe you may be sacrificing returns, if you go too risky you could bankrupt yourself.

So where should you put your money?

In the current economic climate, it's probably best to get a safer return than a higher one. CD rates are at a low, but they are FDIC insured for up to $250,000. You can't get safer than that. Do you really want to risk your cash to get a quarter of a percent higher return?

A lot of smart people were fooled by garbage securities and ponzi schemes which have recently been revealed. Since you're not a financial professional, you could be fooled just like these pros were. It's best to stick with something like certificates of deposits because of their safety.

With advertised CD rates, you simply place your money in for an agreed upon term, and you earn the interest that was advertised. It's very easy and very safe. Your money is guaranteed by the US government to be insured.

This doesn't mean you can't put any money into stocks, money that you know you won't touch for 10 years should be put into the stock market, but money you'll need in the near future needs to be placed somewhere more stable.

Michael updates the CD rates at Bromoney including their short term CD rates.