Passive Income: Earn Money While You Eat, Sleep, and Travel – Certificates of Deposit
by mox on Dec 20, 2008 with 0 Comments
CDs are your more traditional means of saving. Diversity is key and these are still around for a reason… they work. Your return isn’t as high as a P2P lending situation, wherein you can get anywhere from 8%-12%, but the risk is much lower.
With CD’s or Certificates of Deposit, you invest your time and money into a bank. Different rates and lengths of time are available from 3 months to 60 months. Percentages average from %1.75 – %4.00. The good thing about CD’s is you don’t have to worry about an individual defaulting on a loan, as most deposits are insured up to $250,000.
A good thing to do before investing in a CD is to invest money in P2P lending as well, this will give you the riskier investment that the safety of the CD can balance. Once you’re ready, do your homework! Figure out how long you are willing to tie the money up, do you want to do recurring CD’s every 3 to 6 months or longer 3-5 year CD’s? Run the numbers, find out how much you’re willing to invest then see what deal you can get for the amount of time you’re looking for.
A great site to do research on that features daily updates of rates and deals is http://www.bankaholic.com/ Bankaholic offers information on CD’s, Savings, deals from banks, credit card rates and more.
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Published in: Personal Finance
