New Yorkers Grow Their Savings with CD Rates
A troubled economy, declining employment opportunities and substantial cost of living are factors that all New York residents must contend with. Maximizing your extra funds with New York CD rates can help you overcome these obstacles.
CDs are gaining a steady following as a secure investment, since these accounts provide better returns than a basic savings account, while still being insured up to $250,000 by the FDIC.
Another benefit of CD accounts is that they force New Yorkers to dedicate a large, lump sum toward saving for future goals.
How New York CDs Work
In order to purchase a CD, depositors will need to provide a one-time deposit for a specific time period. The deposit minimum depends on the financial institution, but often it’s at least $1,000.
How long you lock your principal into the CD is really dependent on how long you are able to remain hands-off of your funds. Typical term lengths are 6 months, 12 months and 24 months. Depositors who opt for longer terms will be offered the best CD rates available, meaning high yields after maturation.
It’s important to note, however, that withdrawing funds prematurely against CDs will apply penalties for a certain percentage of interest earned. If your CD hasn’t had time to earn interest, penalties are applied directly to the principal causing your investment to spiral down.
Using New York CD Rates to Your Advantage
So, why should you start saving sooner rather than later? With current financial instability in the air, it only makes sense to anticipate for a similar economic climate years down the line. Looking for the best CD rates now can help steady your finances in the future. Life’s big ticket events like college, marriage, first home purchase, children and retirement are all major pieces that require advanced planning.