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What is the best interest rate?
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4th Feb 2010 by Daniel Cross, ChFC
The best interest rate is not always the highest one. Associated with the rate of return is the risk involved. Savings accounts have low interest rates, but have little risk attached. Certificates of Deposit offer a higher interest rate, but require a period of time in which that money is inaccessible and therefore creates more risk. An investor should always be aware of the risks when considering the interest rate of a particular investment.
The best interest rate is not always the highest one. Associated with the rate of return is the risk involved. Savings accounts have low interest rates, but have little risk attached. Certificates of Deposit offer a higher interest rate, but require a period of time in which that money is inaccessible and therefore creates more risk. An investor should always be aware of the risks when considering the interest rate of a particular investment.
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5th Nov 2009 In Investing
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