Already on ArticleSlash?

Forgot your password? Sign Up

Investment Rates In Today's Financial Market

Chickie Maxwell
 


Visitors: 639
 2 votes

The financial markets have been in a state of disarray since the financial crisis in late 2007 and 2008. Despite of this fact, many lenders and borrowers are still involving themselves in certain securities and investment activities. Investment rates ultimately determine whether or not an investor and borrow will take part in using or investing in certain securities. These investment rates are always changing, but they usually operate around a certain mean for each individual type of security.

Certificates of Deposit and CD Rates

Certificates of deposit (CDs) can be acquired from all kinds of financial institutions. They usually offer better investment rates than a typical savings account and mature after a specified number of months or years. Different institutions use different rates for their certificates of deposit, and different rates are also assigned for each class of CD, usually depending on time to maturity. For a 6 month CD, most banks are offering rates between 0.30 and 0.60 percent annually. For 1 year CDs, most banks are offering a rate between 0.85 and 1.10 percent annually. A 3 year CD can usually earn about 1.31 percent at most institutions today. Most banks and institutions are offering rates around 1.70 percent for 5 year CDs.

Money Markets

A money market account is generally lumped in with savings accounts. This special type of account is also backed by a certain number of securities, so its interest rate is slightly altered by how well the market is doing. The particular securities that are affecting a particular money market account can be acquired by the institution that is offering the money market account. Most money market accounts are currently earning an investment rate that is averaging about a 1.00 percent annual percentage yield. Some money market accounts that have a minimum deposit requirement are offering slightly higher rates.

Treasury Bills and Current Treasury Bill Rates

Treasury bills are securities that are offered to investors by the government in order to pay for certain government initiatives and programs. The rates that are offered to Treasury bill holders are affected by certain government fiscal policies and interest rates in the market. Often times, the rate on treasury bills is called the risk free rate and is used to determine risk premiums for other investments. It is dubbed the risk free rate because there is a near zero probability that the government will default on its obligation to repay. Currently the 1 year T-bills have an annual percentage yield of 0.13 percent. The rates for 5 year, 10 year, 20 year, and 30 year T-bills are 0.71, 1.24, 2.59, 2.94 percent respectively.

Peer to Peer Lending

Generally, peer to peer lending is done when two people are interested in doing business with each other. One party wants to borrow money and the other wants to lend it for a small fee, usually called investment rates. The interest rates in this peer to peer lending is decided by the parties involved, so there is no set rate on what it can be. The average peer to peer lending rate tends to be slightly higher than the current treasury bill rates.

MyReviewsNow offers advice regarding investment rates . To learn about investment rates , visit our website at MyReviewsNow.net .

(567)

Article Source:


 
Rate this Article: 
 
How To Work At Home With No Investment Today
Rated 1.0 / 5
based on 2 votes
ArticleSlash

Related Articles:

How to Find Cheap Missouri Auto Insurance Rates Find the Cheapest MO Car ..

by: James J. Robinson (July 20, 2008) 
(Insurance/Car Auto)

Investment Property UK - Is It Still Worth It With Rising Rates?

by: Jennifer Tweed (June 03, 2007) 
(Real Estate)

Investment Property UK - Are UK Interest Rates Pushing Out Investors?

by: Jennifer Tweed (June 03, 2007) 
(Real Estate)

Financial Trading, Foreign Exchange Market - Forex Trading in the Financial ..

by: J Michael Brown (April 05, 2008) 
(Finance/Currency Trading)

Who Needs Financial Investment Advice?

by: Sean Horton (July 09, 2008) 
(Investing)

7 Great Financial Investment Tips

by: Joan Smithston (June 03, 2007) 
(Finance)

Go Online and Get the cheapest auto insurance rates Today!

by: Roger Moore (October 18, 2010) 
(Insurance/Car Auto)

What Sort of Investment Products Are Available Today?

by: Linus Xavier (September 10, 2010) 
(Investing)

The Best Investment You Can Make Today - Guaranteed

by: Heshy Shayovitz (January 28, 2008) 
(Self Improvement/Inspirational)

How To Work At Home With No Investment Today

by: Eddy Salomon (January 19, 2007) 
(Home Based Business)