CD rate is lower again from the banks

I dont think it would be wise to invest in anything high risk right now... although for me I never would go into a high risk.. when I worked in the office field and had an IRA I went with the market fund vs the stocks... I did well too, until things went bad with the banks and everyone lost good chunks of change... not saying I had a ton in there --right now it would have seemed like a million bucks-- the couple thousand I had in there... but unfortunately I had to cash that out a few yrs ago to get us back on our feet... I wish I had it again so I could cash out again... we could really use that extra!! oh well, I am trying to earn a little extra here and there to help out anyway!! Happy mylotting!!

I have never bought CDs, basically because I can get just as good a return with a money market account and the money isn't tied up for a set amount of time. I can withdraw it any time I want. For instance, Capital One has an online savings account that is paying 1.60% APY as of today, which is about what a 6 month CD pays. You can get a higher rate for 2-5 year CDs but you have to have money that you can tie up that long without needing it. I also invest money in stocks and mutual funds with an online brokerage account and I've gotten about a 25% return over the last year. I wouldn't recommend that method for everyone though as it is a volatile market and your money is definitely at risk. You've got to invest the time to learn what you're doing or you could lose your shirt. Basically, what gives you the best potential return also has the highest risk so even though the banks aren't paying much, it's the safest place for your cash and you won't lose money.

I'm hesitant to buy CDs in this economy anyway. With such low rates, there's not much worth buying into, and I wouldn't want to get locked into a low rate just in case interest rates start to rise again.

It won't make any differencs because several proposals suggest that money made on investments should be taxed as a much higher rate. One Congressional aid suggested that the rate on interest earnings and investment earnings should be 95% because the governemnt could use the money better.

If I had the money I would get a CD again with little thought. It keeps the money from being so easy to spend and earns a higher guaranteed interest compared to savings account. Never cared for risk type investing low or high even when the market was doing fine. Some do not like CDs because you cannot get the money right away when you need it, but the bank I do it with the only penalty for early withdrawl is losing the interest earned, which is not an issue if I needed the money I would still have what I originally put into it.