When reviewing various CD accounts that are available it is important to compare interest rates and several other things that can make a CD account stand out. Here are some of the key points to consider and why you might want to consider a Bank of Texas CD account.
Current rates show that Bank of Texas CDs are some the highest out there! The rates are sitting at about .75% (5 years), which is pretty good when you compare them to other that are merely about .60%. It is a good idea to look into using a CD that has a higher interest rate to lock your money into. Some of the key benefits to the Bank of Texas CD include the following:
- Higher interest rates from most other banks (compare rates now)
- Ability to lock in a higher rate
- No fee to open their CD
- FDIC insured up to $250,000
- Have the option to style a CD as a Roth IRA
- Can use your CD as collateral on a Bank of Texas loan
- 24 hour ExpressBank service
Why A CD Account?
Out of all the investment accounts out there, you may be curious to know why we recommend you use a CD. First, the interest rates for savings are much higher than you will get with just about any other bank. Second, CD accounts are one of the most commonly used low-risk investment options. They are safe! Having something that is secure and will give you a return is rare in today’s economy, which is why it’s nice to have a CD as a security feature in your investment portfolio.
CD accounts continue to rank higher on our list for savings plans because the interest rates are competitive. They will give you a chance to really predict what your earnings can be where a money market and even a savings account can vary, making it hard for you to figure out.
One approach to a CD account is to use a strategy called CD laddering. This is beneficial as it will allow you to determine the length of time for your CDs so you can continue to get money back frequently. Many investors find that CD laddering is nice for retirement as you always have your money invested somewhere and you can continue to earn.