Security
Visit the websites of the major ratings agencies (Moody's, Standard & Poor's and Fitch) for an independent view on the creditworthiness of both the institution accepting your proceeds (ie, your bank) and the instrument you have chosen to invest in. While each agency uses different criteria for assessing credit risk, a system of letter-designated ratings range from AAA (indicating the strongest capacity for timely payment of financial commitments) to D (indicating actual or imminent payment default).
Be wary of purely chasing the best rate available without establishing the underlying credit risk, as higher rates of interest tend to be offered by institutions with a lower credit rating, with higher returns offset by a greater risk of non-repayment.
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