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Treasury Bill vs CD

6 July 2007

Certificates of deposits (CD) yield rate can be equalized to Treasury Bills. Both of them are heavily influenced by Bank Interest Rates in a given time. Treasury Bill rate is an interest rate paid on government issued bond so naturally if the rates are low then even the Highest CD Rates will be low. Choosing the Best CD Rates with shorter maturity date is a good investment decision when the Treasury Bills Rates are low and when Treasury Bills rates pick up then one can go with longer term CD. Of course CD laddering will be a good solution to get the best interest rate from CD.

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