No matter where you live in California, you know that having ample savings and investments is necessary. That’s because California commands one of the highest costs of living in the country, and a high California CD rate will go a long way in helping your finances here. California is facing unprecedented challenges in the growing population and increasing debt burden, all factors that will affect everyone’s income. Only by investing in the best CD rate you can find will you be able to keep up with the growing expenses that face the state.
A certificate of deposit is the best way for you to grow your money without fear of losing it. There are few investment options available for Californians that offer that kind of a guarantee. In fact, you have nothing to lose unless you choose to avoid investing in a CA CD altogether.
Learn more about how you can find the top CD rates in your state using our online rates comparison tool. You’ll be amazed at how much interest you could potentially be missing out on.
California is a place known for innovation in investments, but there is still no investment that can match a California CD with a high rate. Let’s take a look at why housing, stocks and even retirement funds can fail in comparison. Here are some reasons CDs beat the following investments:
1. Real estate: In California and the rest of the country, housing has taken a beating. Many people who invested hundreds of thousands into investment properties are now underwater on their mortgage, facing foreclosure and walking away. Had they invested that money into a CD even at 4%, their returns would be much greater today versus being in a losing position.
2. Stocks: Since the peak of 2008, stocks lost about 43% of their worth. Many people suffered a double whammy in losing at the stock market and in home values. Again, a safe investment like a CD will never lose money compared to stocks, which can be extremely volatile.
3. Retirement funds: Retirement funds are mostly invested in stocks, and they suffer from the same kind of losses and systemic risks of that investment grade. Many people lost over half of their retirement portfolios and have had to avoid retiring. As people get older, a more conservative investment like a certificate of deposit will work wonders for hedging more risky investments.
Start researching to find the best CA CD rates available using our online rates comparison tool.
As of now, finding the best CA CD rate you can should be your top priority and is the best choice for your money. Everything in California is expensive, but that’s the price we pay for the gorgeous weather and proximity to the west coast. By investing in a high rate CD, you’re helping yourself maintain and grow the proper funds you need in order to continue living the California lifestyle.
However, there are some other considerations you should make. For example, a high rate CD may only be for a short amount of time. Do some calculations and see how much interest the account will yield in total, including the months after the teaser rate has ended. Then compare that yield to what you would get with the next highest CD rates to see if it’s actually worth it for you.
Running the numbers and determining the highest amount of interest you can earn for your deposit is the best method. You might be very surprised at how high CD teaser rates could end up costing you later on. Start learning more about certificates of deposit today and maximize your financial future.
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 California Banking Rate partners if rates are falling or rising, and make the right choice to earn more money.
