| Advanced options ▼ |
Include credit unions with membership based on any industries that you or immediate family members currently or have previously worked in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6+ Year CD Rates
Investing in CDs can be a very useful component of a conservative investment growth strategy. Instead of the risk posed by bonds, which some would deem as the next level of investment, a bank or credit union certificate of deposit could generate a comparable return, especially those in the 6+ Year CD category (which are typically high yield CDs). As a time deposit, 6 or more years is considered a long time in the banking industry, so financial institutions are willing to pay the best CD rates currently available in exchange for your loaning them the money. There are several 7 year CDs and 10 Year CDs available in the rate table above, but rarely if ever will you find a longer term.
Variable Rate CDs
Individuals looking to invest in 6+ Year CDs may also be interested in those that feature variable rates. A variable-rate CD is a broad term for a CD whose interest rate is tied to (and determined by) a variable in the market like an index or U.S. Treasury Note rate. The structure of the interest rate schedule differs with each financial institution, but generally the schedule is predetermined so that the interest rate on the CD changes at set times. Depending on the variable tied to your 6+ Year CD, this feature could be a boon or drain on your savings. Doing your research on the underlying variable, such as the Dow Jones Industrial Average, is necessary to lower the risk of your mistiming the CD, or knowing when to close out an open CD and take the penalty.
Brokered CDs
Brokered CDs are offered by some financial institutions in order to provide a more aggressive CD investment strategy by finding the best interest rates available. For his or her services, a broker usually charges a nominal fee, but will (hopefully) always be on the lookout for the best rates and tell you when closing, opening, and reinvesting CDs are in your best interest.
Callable CDs
Also, make sure to read the fine print on any CD before you fund it, and be on the look out for a “callable” provision. Callable CDs are offered by banks and credit unions in order to hedge the amount of interest they may have to pay on a given CD. The terms of agreement would read something like: “XYZ Bank reserves the right to call, or close, this Certificate of Deposit after one year, or if the variable interest rate reaches a certain threshold.” Ensure that the CD you are opening is non-callable, so that you don’t miss out on any earning potential. Earnings on the principal amount of any CD you open are taxable as income, unless you put them in a tax-deferred IRA.