CD's May Not Make You Rich, but They Protect Against Losses in Unstable Economy

The Wall Street Journal recently reported that interest rates for savers may stay low even longer than previously thought. As such, investors may be tempted to chase higher-risk investments in search of higher interest rates. That’s fine, as long as you realize you could lose some of your principal in riskier investments, you plan for it, and you can afford to take the potential loss.

For safe investments like FDIC-insured CDs, decent interest rates can be still be found, though the rates may not be ideal. If you qualify for membership in the Navy Federal Credit Union (eligible members include all branches of the military, retirees, reservists, and their family members such as siblings, children, grandparents, and more), you can get a 7-year certificate at a 3.5% APY with a $1,000 minimum deposit. If you have more to invest, you can get a 3.66% APY 7-year certificate with a $20,000 minimum deposit. 5-year certificates with a $1,000 - $19,999 deposit earn a 2.85% APY. If you invest $20,000 or more, a 5-year certificate will earn a 3.00% APY.

If you don’t have any association with the U.S. Military, Discover is offering a 7-year CD at a 3.25% APY or a 5 –year CD at a 3.00% APY. Interest is compounded daily and it requires a $2,500 minimum deposit. Readers should be aware there are mixed customer reviews for Discover bank customer service on BestCashCow.com. While researching banks, you should always check out both the negative and positive customer reviews and ratings so you can make an informed decision.

For the best information on CD rates, click on the CDs tab above.