Savers and investors who are burned out on speculation and investment scams might be understandably cynical about the phrase "a sure thing." However, there is a sure way smart investment shoppers can earn something extra on their bank deposits, without taking extra risk.
Here's the catch: it won't make you rich overnight. Still, if there's one lesson to take away from the succession of busts in dot.coms, housing, and hedge funds, it's that get-rich-quick schemes are always designed to get somebody else rich. In contrast, a secure retirement is built step-by-step.
The first step is this: don't leave money on the table. That may sound obvious, but chances are you have a bank account or CD that is paying you a less-than-optimal interest rate. In fact, due to some unusual conditions, differences among interest rates are especially high right now. That's where the sure thing comes in--making sure you benefit from those differences rather than suffer from them.
Market Conditions Have Sharpened Differences in Rates
Why are there such sharp differences in interest rates from one bank product to the next? A couple prominent reasons:
The point is, you can get an extra percentage point just by moving out a few months in CD duration. You can get another full point by shopping around among banks. On the maximum FDIC-insured deposit, you'd now be up to an additional $5,000 per year.
Bank Shopping in the Internet Age
Of course, you may not be accustomed to shopping around for banking products. Traditionally, people tended to find one bank and stick with it--either a comfortable household name, or a local community bank. However, recent conditions have shaken up much of the complacency regarding those traditional choices:
Internet resources have made it easy for smart shoppers to expand on these traditional banking choices. Using those resources can help you find a sure thing in the form of some extra interest on banking products. Sure, it's a small step, but won't it be refreshing to see your finances take any step in the right direction?