Investing in CDs During Economic Downturns

Every economy goes through cycles, and it’s no different from the one currently affecting Colorado and the rest of the nation. Seeing how hard the recession has hit some areas should make you realize how important saving is – you never know when the next downturn can hit. CDs make saving easy because they are straightforward and extremely safe. In fact, it’s one of the few investments that can guarantee you a return.

Governor Bill Ritter recently announced the creation of several new jobs for Colorado residents through the new Statewide Public Safety Recovery Act, which will be funded through grants and create 65 new positions related to public safety. Things will continue to look up for Colorado when the greater economy is expected to pull out of its recent decline later this year.

There’s a lesson to be learned from this and previous recessions, and it’s that you should always have a sizeable rainy day fund and expect the unexpected. Had you been laddering CDs since the early 2000 boom years, you would have a significant cushion from the current recession. It’s not too late, and in fact you should sign up for a CD and start saving immediately.

You can use our online CD rates chart to locate the best rates in your area, simply by entering your zip code. Once you sign up, you can relax knowing your money is working to make your more in interest. CDs today are extremely popular because of their safety and guaranteed return rates. There are even options to increase your earnings with CDs with bump up features and low penalty early withdrawal fees.