How to Find the Best CD Interest Rates?

Answer 1

Certificates of Deposit (CDs) are chosen by people who want someplace safe to deposit their money. They can also find higher CD interest rates than simple savings accounts, but all CDs are not created equally. In order to find the best CD interest rates, savers need to look for a few things before they decide which CD they will purchase.

Ways to Receive the Highest CD Interest Rates

In order to receive the highest interest rates, people need to choose a longer term. This will mean that the saver will not have access to the money for as long as the term lasts without incurring a withdrawal penalty. If the saver can tolerate the term and knows that the money will not be needed, a long term may be possible.

The other way to obtain high CD interest rates is to wait until the current interest rates are high. When the current interest rates are increasing, these rates determine what the banks will offer for their CD interest rates. Investors who shop around for the most attractive CD interest rates will have the chance to find higher rates; when the competition is intense, banks know that they need to impress their potential clients with high CD interest rates.

Visit a Credit Union

The credit unions tend to have higher CD interest rates for their customers. The reason is because they are non-profit organizations. These enterprises have the desire to increase their profit margins and to do this they entice people to deposit their money with them in order to increase the amount of money they have to invest in their financial instruments.

Keep All Accounts at One Institution

Another way to obtain the best CD interest rates is to keep from opening accounts at different banks. If savers deposit all of their money into accounts at one bank, they may receive a preferred interest rate for their CDs. It would also make it more convenient for the savers to have all of their money in one place.

People who take the time to find out what rates the banks and credit unions are offering have the greatest chance to obtain the best interest rates.