Saint Louis Banking Rates

Using Alternative Saint Louis CDs to Build Your Nest Egg

Certificates of deposit have become the ideal long-term investment method used by Saint Louis residents, especially with the state of the world economy as of late. The reason being that all CDs with a total balance of $250,000 or less are fully insured by the FDIC per depositor, making them a safer place to devote extra funds toward.

Due to the increased popularity of CDs, financial institutions have started offering modernized accounts that not only showcase the best Saint Louis CD rates, but also caters to the specific needs of individual depositors.

Types Saint Louis CDs

The benefits of contemporary CD types can range from high-yield rates to heightened flexibility for depositors.

Not all banks and credit unions offer specialized CD accounts. However, if investors are unwilling to compromise in a certain area– like accessibility, for example– it may be worthwhile to investigate which financial institutions provide CDs that agree with your needs.

Banks and credit unions are becoming more creative with variations of CD accounts, but the following are among the top contenders:

Callable CD

Investors will find that the best Saint Louis CD rates are often attached to callable CD accounts, and are drawn to them because they promise high and immediate returns. These rates, however, are typically short-lived, lasting for a few months. Once the call protection period expires, institutions will call– or terminate– CDs and reissue them to depositors at lower rates.

Bump-up CD

Bump-up CDs also hit the mark for potentially gaining the best CD rates compared to basic CD accounts. Unlike callable CDs, investors have the option to “bump-up” their CD rate, should average market CD rates increase.

On the other hand, investors take the risk of downward average CD rates. This type of CD benefits the most when tied to longer terms, as there is more opportunity for CD rates to increase.

Negotiable CD

These CD accounts are similar to conventional CDs, except investors are able to sell negotiable CDs on secondary markets. Due to the required minimum $100,000 deposit, negotiable CDs are at the top ranks as having the best CD rates in the Saint Louis.

Liquid CD

For depositors who need to access their funds before the CD’s term ends, liquid CDs give investors the benefit of drawing against their CD account without penalties. Most institutions limit the amount of times withdrawals can occur, and a minimum balance must be maintained in order to accrue interest.

How to Choose a CD in Saint Louis

Successful investors will select an account with contains terms and conditions that they can realistically uphold. Understanding your budget, lifestyle, short-term and long-term goals will enable you to make smart decisions with your money.