Best CD Interest Rates

Answer 1

CD interest rates are not extremely high at the present time, but you can still find better Certificate of Deposit (CD) interest rates at certain financial institutions than at other ones. The best CD interest rates are easily found online. All you need to do is search for the best CD interest rates on any of the major search engines, and you are sure to notice several websites that specialize in comparing CD interest rates. These websites make searching for the best rates an easier task because you can easily compare all of the CD interest rates on one convenient page. Read this guide on the best CD interest rates to learn valuable information about this type of investment.

A slightly higher interest rate makes a big difference

Aurora Bank is currently offering 1.200 percent interest. Ally Bank is currently offering 1.190 percent interest and Bank of internet USA is currently offering 1.330 percent interest. (See http://www.bankrate.com/cd.aspx.) All of these banks compound interest daily, which makes a big difference in the total, year-end yield of your CD account. A rate of 1.330 percent may not seem like much more than 1.190 percent, but the extra 0.140 percent does add up to greater savings, especially when you consider the fact that the interest is compounded on a daily basis.

Choose a CD account in which interest is compounded daily because daily compounding of interest means additional money in your pocket. When interest is compounded monthly or quarterly, the yield is not as great as when it is compounded daily.

An interest rate hike of 0.140 percent might not seem like much, but even a small percentage amount can add up to larger savings at the end of the year. Do not open a CD account that offers monthly or quarterly interest. When an interest-bearing savings account, checking account or CD account is compounded daily, you do notice a dramatic difference.