2009 CD Rates Up or Down?
Something I think a lot of people have on their mind is the question of how well CD rates will be performing come the new year of 2009. Will cd rates go up in 2009? Lets look at a couple positives which definitely makes CD rates just as tempting for 2009 as they are right now. Until Dec. 31, 2009, deposit insurance has been increased to a whopping $250,000. With that in mind, and the current crisis which doesn’t look to be getting better anytime soon, more investors who have lost their pants on investing in stocks are more likely to be investing in Bank Certificate of deposits.
So the question remains, with Bank rates go up in 2009, or will they drop and hit a plateau? Why wait to find out. If you want a good CD rates investing strategy, then lets look at how you can play it safe and still average a nice return on your investment.
The method we will discuss now is called laddering CD’s. The ideal way to invest with Bank certificates of deposits would be to NOT invest all your money in one long term CD. But rather, when you see a good deal On a CD with a high interest rate which requires a small deposit, then you would invest some of your money into it. This does several things for you. It allows you to still search for increased Bank CD rates while at the same time not having all your money tied up.
I have said this before, and I will say it again. Some of the best CD rates are short term. If you continue to invest with smaller amounts of money continuously over a period of time you will be able to recycle the return back into another CD. One you have made enough on the return of several CD’s then you might consider using that interest to invest in a long term CD for 5 years or so. This still leaves you with your original investment and allows you to stay in control of your money not only now, but well on in to 2009.
So if you are considering investing in a CD in 2009 instead of now, and you have a decent sum of money, you may not want to wait. There really is no 100% telling how high or low CD rates could go in 2009. To play it safe, spread yourself out over the period of now and 2009. And lock in 6 month, 12 month, and 18 month certificate of deposits when you find a particular high interest bank CD special.
November 28th, 2008 at 10:27 am
I think they will go up even more. We haven’t seen the worst yet o the stock market dropping. A few good days doesn’t mean anything.
February 11th, 2009 at 7:49 pm
they have not been going up they have been coming down for a year with FED decisions. They will not start going up until the Fed begins to raise rates and there is a vaiable lag.