Knowing how to create a CD ladder and manage it proper takes a little time but it is a wise long term investment strategy for the conservative investor.
To start a CD ladder the investor must first look for the best possible overall CD rates that are being offered. The rates do not all have to be with the same financial institution. The object is to get the highest possible return on CD’s that are at different maturity terms. The 3 rung ladders as well as 5 rung ladders are the most common but you can have as many as 9 rungs if you have the money to make the investment.
An example of a 3 rung ladder would be one CD with a one year term, the second at a 2 to 3 year term and the third being a 3 year to 5 year term. Ideally you would want to have a CD maturing each year. This way after one year has passed the 1 year is ready for reinvestment, the 2 year has one year left until it is mature and the 3 year is now a 2 year CD. The advantage to this is that with different maturity terms, money will be accessible each and every year without an early withdraw penalty if it is needed for purposes other than investing.
Another key advantage to a CD ladder is that with the maturing of a CD every year, if the rates on CD’s increase, you do not have that long to get a piece of the action.
The key is to know the maturity dates of your CD’s and do not allow them to automatically roll over. This
perkstreet Financial is having a promotion where you can get a $50 bonus when opening a new online checking account. To qualify for the $50 bonus you need to do the following:
Open a new online checking account with a minimum of $25 Open the account by 12/31/2009 Keep the account active for 3 straight months Initial funding can be done with a credit card (this is treated as a purchase and not a cash advance)
If the above criteria are met you will receive $50 in your account within 15 business days of the end of the third month.
The perkstreet free online checking account is being promoted as a rewards account. You earn a reward of 1% cash back on purchases when using your debit card that is tied to the account. The 1% is based on non-pin debit card transactions. The 1% cash back is a great deal since most checking account offer rewards that equate to far lower than a 1% return.
There is no minimum balance required, however to avoid an inactivity fee of $4.50 you must have activity in the account each month from either a debit card transaction, check, deposit or withdrawal.
Colorado Federal Savings Bank offers a high interest savings account that has a current interest rate of 1.70% APY. This money in the bank deal can be opened with an initial deposit of $2,500.
Interest consumers can take advantage of this best savings account online by clicking the application button on the bank’s website. Like other savings account and money market accounts, this one limits take out to six per month.
According to the disclosure page of the savings account, the bank does not collect any online account fees and monthly service charges. The bank collects $25 fee for every transaction if you exceed the monthly withdrawal limits.
The bank also provides an ACH service to transfer funds to and from your account. Another attractive feature of this savings is that they do not charge for any ACH transfers.
The interest rate that we got from the website has a posting date of October 2. Please check the website or call the bank to find out about the latest figures.
Colorado Federal Savings Bank is headquartered in Greenwood Village, Colorado. For inquiries about their products, you can call 877-484-2372 or 303-793-3555.
Bankrate.com rates the bank’s performance with 4 stars. Thi
Utility bills can be a big part of any household budget, and you can cut your utility costs with a few simple precautions.
The bills for electricity, gas, garbage pickup, cable TV, telephone, cleaning supplies, pet food, and a dozen other items take a big bite out of the bank account each month. Saving money here without suffering can be tough. Sure, you can cut the electric bill by turning off the air conditioner, but when it’s a hundred degrees outside, what fun is that? A better approach is to look for less drastic savings that together add up.
Cutting energy costs
Making sure your house is well-insulated. Caulk around all windows. On a very hot or cold day, place your hand in front of electrical outlets to check for leaks. You can purchase inexpensive kits to insulate outlets and light switches.
In warm weather, keep blinds or drapes drawn during the day to keep out the sun’s heat. In the winter, close blinds and drapes at night, but open them during the day to let the sun help warm rooms. Use heavy drapes and rolled towels to block drafts at windows and doors.
Plant trees and vines to shade south-facing windows from the summer sun.
The average return on 24-month CDs fell to a record low of 1.34% APY this week.
In doing so, it became the last of the five CD rates we follow on a regular basis to set a new record for miserly returns since last summer.
Indeed, the average rate on 1-year certificates of deposit also fell to a new low this week, and the rate on 3-month and 6-month CDs held steady at previously set record lows.
The previous record low for 2-year CDs was 1.36% APY in July 2003.
All in all, a sorry state of affairs for the nation’s savers.
Bankrate’s weekly survey of large banks and thrifts found the average annual yield for a:
3-month CD remained at 0.40% for the fourth week. That’s the lowest average since the survey began tracking 3-month CD rates in March 1989.
6-month CD remained at 0.56% for the second week — the lowest average since the survey began tracking 6-month CD rates in January 1984.
1-year CD fell to 0.88% from 0.89% the previous week — the lowest average since the survey began tracking 12-month CD rates in October 1983.
2-year CD fell to 1.34% from 1.39% the previous week — the lowest average since the survey began tracking 24-month CD rates in March 1989.
— Admin @ 12:35 am — 
November 24, 2009
Indeed, the average rate on 1-year certificates of deposit also fell to a new low this week, and the rate on 3-month and 6-month CDs held steady at previously set record lows.