Are you looking for a better yield on your savings? Better investment rate for your earnings compared to a revenue market or savings account? A certificate of deposit is what will need to earn benefits for your investment over a short period of time.
So, what is a certificate of deposit (CD)?
A certificate of deposit (CD) is a record issued by the commercial banks where your investment is awarded with fixed interest rates that is determined ahead of time and a fixed maturity date. CDs are the most reliable investment that a person can make.
Common types of CDs that you can choose from
Traditional CD:
If you opt for this CD, you would receive a fixed rate of interest until your savings account is matured. Once the investment period is completed you can either withdraw the money or invest it again in another CD.
Bump-Up CD
This CD gives you a chance to raise the interest rate and allows you to take advantage on the rising taxes. Most of the institutions offer this type of certificate of deposit at least once during term of CD.
Liquid CD
The advantage of this type of CD is that it allows you to withdraw a part of your deposit without paying a penalty. The interest rate offered on this may not be as high compare to the other types of CDs.
Zero-Coupon CD
In this type of CD, you will not be paid any interest rate during the term of CD.
Callable CD
This particular CD can be called away by the issuing bank even before the maturity date is reached. The other reason is to avoid paying the payee a higher rate of CD when the interest rate drops down.
Brokered CD
This type of CD is offered by a brokerage and these CDs carry a higher rate of interest as they compete nationally. Brokerages have access to thousands of banks, including online banks. The risk with this type is that you may tend to lose money if you open an account with uninsured organizations.
Key points to remember
The most important thing to be kept in mind before you start searching for today’s highest CD rates and the best CD rates is the investment time frame. Once this is clear, the process turns out to be simpler and you can decide on a CD by comparing the interest rates and secure the best CD available.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.