CDs: Secondary Market

Saving money is important regardless of any other factors, since the economy has not been doing very well (with bank failures happening across the country and many Americans getting laid off from work) saving money is becoming more and more of a priority. Those who are more inclined to live without worrying for tomorrow, can realize that it only takes one financial emergency to make them see the need to be prepared for unforeseen hardships.

One popular way of saving money, while at the same time earning interest on that money, is to invest in certificate of deposit (CD). CDs can not be accessed (without being penalized) for their entire term period until the maturity date is reached. So if a CD is purchased, the CD should be kept until it reaches full maturity. However, if you are facing some hardships and need to access that money right away – you can sell your CD on what is called the secondary market and collect that money.¬†Generally, you would get less than the full value of the CD from the buyer, if you choose sell it in the secondary market. To get the best CD rates, you’ll have to leave your money in for the specified term.

To learn more about the highest CD rates, the primary market, the secondary market, or any other investments read more related articles on Go Banking Rates.