Locking in yields.Tailor A tailor is a person whose occupation is to sew menswear style jackets and the skirts or trousers that go with them. Although the term dates to the thirteenth century, tailor certificates of deposit for specific cash needs Certificates of deposit may not be your or your father's investment. More likely, they're they're Contraction of they are. they're be your grandfather's choice. Looking past their stodgy stodg·y adj. stodg·i·er, stodg·i·est 1. a. Dull, unimaginative, and commonplace. b. Prim or pompous; stuffy: reputation, CDs are easy to acquire (just walk into your local bank) and virtually risk-free Adj. 1. risk-free - thought to be devoid of risk riskless, unhazardous safe - free from danger or the risk of harm; "a safe trip"; "you will be safe here"; "a safe place"; "a safe bet" , with the Federal Deposit Insurance Corp. (FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) covering accounts up to $100,000. Low risk usually means low returns, and historically that has been the case with CDs. Today, though, new technology has turned up the heat in the CD business. "Internetonly banks, with their low overheads, often pay higher yields on CDs," says David Hendelberg, a CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. and certified financial planner Certified Financial Planner (CFP) A person who has passed examinations accredited by the Certified Financial Planner Board of Standards, showing that the person is able to manage a client's banking, estate, insurance, investment, and tax affairs. with the Atlanta-based accounting firm Jones and Kolb Kolb may refer to: People
The Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the also helps you save shoe leather while you chase those high yields. "We update our survey every week," says Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) McBride, a financial analyst at bankrate.com, a Website that posts the top CD yields for several different maturities. "All of the banks we list offer FDIC insurance, so investors can feel confident about placing their money with a distant bank." What's the best way to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. CD investments? "If you're you're Contraction of you are. you're you are you're be going to place a sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. amount of money in CDs, stagger the
maturities," recommends Hendelberg. "Put some into one-year adj. 1. completing its life cycle within a year.Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants certificates, some into two-year certificates. That way, you'll have CDs maturing each year in case you need cash, [and you won't have to] pay an early withdrawal penalty, which can be substantial. If you don't need the cash, you'll have the opportunity to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. at the highest rates available then." If you stagger maturities, you can also use different banks for different CDs, locking in the highest possible rate for each maturity. However, it may be advantageous to do all of your business with one institution, says Ginita Wall, a San Diego-based CPA and financial planner Financial Planner A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. . "Besides convenience, you may find it easier to get loans, qualify for fee reductions and receive better service if you're a valued customer at one bank, especially a local bank" she says. On the other hand, says Wall, "If you have bank accounts over $100,000, you might want to spread your money among two or more banks because [$100,000 is] the upper limit for federal deposit insurance." Top-Yielding CDs
Institution Name/Headquarters Yield
6-Month CD (National Average: 4.63%)
Bank Caroline, Travelers Rest, SC 6.30%
TeleBank, Arlington, VA 6.28
Net.B@nk.Alpharetta, GA 6.26
M&T Bank, Buffalo, NY 6.26
USABancShares.com, Philadelphia, PA 6.25
1-Year CD (National Average: 4.95%)
TeleBank, Arlington, VA 6.52
Bank Caroline, Travelers Rest, SC 6.50
Net. B@nk, Alpharetta, GA 6.50
Security First Network Bank, Atlanta, GA 6.50
BankDirect, Dallas, TX 6.50
5-Year CD (National Average: 5.46%)
TeleBank, Arlington, VA 7.08
Key Bank USA, Albany, NY 7.04
Capital One FSB, Falls Church, VA 7.00
Providian Bank, Salt Lake City, UT 7.00
Providian National Bank, Tilton, NH 7.00
Institution Name/Headquarters Phone Number/Web Address
6-Month CD (National Average: 4.63%)
Bank Caroline, Travelers Rest, SC 877-692-2766;
www.bankcaroline.com
TeleBank, Arlington, VA 800-835-3226;
www.telebank.com
Net.B@nk.Alpharetta, GA 888-256-6932;
www.netbank.com
M&T Bank, Buffalo, NY 800-528-6532;
www.mandtbank.com
USABancShares.com, Philadelphia, PA 877-482-2650;
www.usabancshares.com
1-Year CD (National Average: 4.95%)
TeleBank, Arlington, VA 800-835-3226;
www.telebank.com
Bank Caroline, Travelers Rest, SC 877-692-2765;
www.bankcaroline.com
Net. B@nk, Alpharetta, GA 888-256-6932;
www.netbank.com
Security First Network Bank, Atlanta, GA 800-736-2321;
www.sfnb.com
BankDirect, Dallas, TX 877-839-2737;
www.bankdirect.com
5-Year CD (National Average: 5.46%)
TeleBank, Arlington, VA 800-835-3226;
www.telebank.com
Key Bank USA, Albany, NY 800-872-5553;
www.keybank.com
Capital One FSB, Falls Church, VA 800-564-7426;
www.capitalone.com
Providian Bank, Salt Lake City, UT 800-414-9693;
http://deposits.
providian.com
Providian National Bank, Tilton, NH 800-414-9692;
http://deposits.
providian.com
Institution Name/Headquarters Minimum
Deposit
6-Month CD (National Average: 4.63%)
Bank Caroline, Travelers Rest, SC 500
TeleBank, Arlington, VA 1,000
Net.B@nk.Alpharetta, GA 1,000
M&T Bank, Buffalo, NY 5,000
USABancShares.com, Philadelphia, PA 500
1-Year CD (National Average: 4.95%)
TeleBank, Arlington, VA 1,000
Bank Caroline, Travelers Rest, SC 500
Net. B@nk, Alpharetta, GA 1,000
Security First Network Bank, Atlanta, GA 1,500
BankDirect, Dallas, TX 2,000
5-Year CD (National Average: 5.46%)
TeleBank, Arlington, VA 1,000
Key Bank USA, Albany, NY 5,000
Capital One FSB, Falls Church, VA 10,009
Providian Bank, Salt Lake City, UT 10,000
Providian National Bank, Tilton, NH 10,000
(*) As of 12/14/99 Source: bankrate.com |
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