Posted on | May 10, 2011 | 2 Comments
Have you ever considered investing in certificate of deposits for your IRA account? Investing in certificate of deposits provide great benefits for investors. Investors are given fixed IRA interest rates for their CD investment. This means that they don’t have to weigh the odds whether they will have a good profit out of their investment or not. Unlike stocks, you don’t have to speculate in investing in CDs. All you have to do is find the highest IRA rates and you are set. You don’t have to pay commissions to brokers or watch the stock market. It is simple, free of risk and convenient.
If you plan to invest in CDs. It is a must that you know how to find the best IRA interest rates. Usually you will find the highest IRA rates from what they call jumbo CDs. These jumbo CDs require IRA account holders to make a large amount of minimum deposit. These minimum deposits can range from $100,000 to $200,000. However, there are some financial institutions that offer Jumbo CDs for a lesser amount of minimum deposit.
Always keep in mind that the highest rate may not always be the best. I’m not saying that you should look for low IRA rates. It just simply means that you just don’t invest in a CD that has the highest rate. You also have to consider several factors before you invest in a certificate of deposit. One of the factors that you need to consider is the insurance policy of the institution. Usually CDs are insured by NCUA for credit unions and FDIC for banks. Those institutions that are not insured usually offer higher rates so that they will be able to compete with the market. It is best that you invest in a CD that has a good rate and has a longer term. This way you will be able to protect yourself from interest rate drops in the future.
- Knowing Where to Find the Best Rates for Your IRA (2011tax.org)
- A Quick Look At Stretch IRA Guidelines (2009tax.org)