Know your own finances2 of 8Don Taylor, assistant professor of business administration at Penn State Brandywine in Media, Pa., and Bankrate's investing adviser, advises consumers to consider three factors when looking for a new home for their money -- liquidity, yield and convenience.For an investor with a smaller amount of capital to invest in CDs, Taylor recommends answering one question: Do you have liquidity concerns?If unexpected financial challenges force you to withdraw your funds early, Bankrate's 2010 early withdrawal study shows that banks can hit you with hefty fees. In fact, 92 percent of banks in the study will take funds from your principal deposit to cover fees, if necessary.Not sure how much easily accessible cash you need? Use Bankrate's emergency savings calculator to make sure your savings stash is strong enough before you buy a new certificate of deposit. Related Articles:Brokered CDs a mixed bagIndex of CD calculatorsHigh-yield CDs best bestNo-penalty CDsRelated Links:CD penalties are costlyCompounding and CD valueCD-laddering calculatorCD or Treasury ladder advertisement
Don Taylor, assistant professor of business administration at Penn State Brandywine in Media, Pa., and Bankrate's investing adviser, advises consumers to consider three factors when looking for a new home for their money -- liquidity, yield and convenience.
For an investor with a smaller amount of capital to invest in CDs, Taylor recommends answering one question: Do you have liquidity concerns?
If unexpected financial challenges force you to withdraw your funds early, Bankrate's 2010 early withdrawal study shows that banks can hit you with hefty fees. In fact, 92 percent of banks in the study will take funds from your principal deposit to cover fees, if necessary.
Not sure how much easily accessible cash you need? Use Bankrate's emergency savings calculator to make sure your savings stash is strong enough before you buy a new certificate of deposit.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
A little research could save you BIG on interest.