Honolulu Banking Rates want to help you earn money, save money and put yourself in the best position for your own financial situation. If you have a savings account that you do not need for the rest of this year, it may be a good idea to invest into a 6-12 month CD and take advantage of the higher interest rates. You can earn up to 1% or more in a CD versus a savings account with a $5000 CD over 10 years; that can be over $500-$1000 more in interest payments with the higher CD rate.
Many local Honolulu credit unions offer competitive CD rates, money market accounts and IRAs, as do the larger national banks. If you want to get the highest interest rates, be sure to thoroughly research banks with the best offers before you make your decision. Honolulu Banking Rates has relationships with many banks to maximize the potential of finding the best rates.
A clear advantage of investing in CD‘s is that CD Rates are fixed, meaning you lock in an interest rate for the entire term of the CD, and it does not change. When interest rates are dropping, your CD stays at a higher rate. If you money is in a savings account, or interest paying checking account, your interest rate will drop daily, if rate are falling. Learn from Honolulu Banking Rate partners if rates are falling or rising, and make the right choice to earn more money.
CDs or certificates of deposit are a great way to invest your money. They offer higher interest rates than savings accounts and give you a way to more safely invest than stock options. You have the option of choosing how long you want your money to be invested, and a little comparative shopping can help you find the best CD rates. When you look into buying a CD using Honolulu Banking Rates, you will see CD interest rates shown in two different ways.
Most CD rates pages show both APY and interest rate for a CD. APY stands for Annual Percentage Yield, and it takes into account the fact that interest will be compounding over time. These rates are using slightly higher than interest rates by 0.01% or 0.02%. It usually reflects compounding for a 365 day period, but you should always read the fine print below each rates table. Any statements you receive should include an updated APY to show you how much compounded interest you earn over time.
An interest rate does not reflect compounded interest. If you took the interest out of your account each month, you would make only the interest rate on your investment. Finally, the last term you should know is APR or Annual Percentage Rate is a term used for loans that does not take compound interest into account and therefore makes your loan look less expensive.
Hopefully, now that you understand these differences, you will be confident enough to invest in your own CDs. If you are looking for the best CD rates for your area, Honolulu Banking Rates can help you find them.
