Most bank CD’s are paying less than 1% interest on a 1 year CD. For those willing to look at other contractually guaranteed investments, there are currently offers for up to 6% fixed interest with only a 1 year commitment.
While not a bank with FDIC backing, First Position Commercial Mortgage Notes are a way to generate substantial interest rates with short terms. Non-accredited investors can obtain a 6% rate. Interest payments are made to the borrower over the course of 12 months with the initial investment being returned at the end of the term. The investment is protected by the value of the property (no greater than 65% mortgage to loan ratio) and the company offering it. In the event of a mortgage default, the investor will not see an interruption in payments and will have no responsibility or involvement with foreclosure/short sale proceedings.
Click the link to learn more about First Position Commercial Mortgage Notes