Where To Find The Absolute Best CD Rates?

Answer 1

CD rates can vary widely and it pays to shop around before putting a chunk of money in for a less than ideal return. Why is that so, and where can someone find optimal CD rates?

CD rates vary for a variety of factors, the primary one being the size of the deposit. Many banks will offer higher CD rates for larger deposits, hoping to attract more money into their bank. Additionally, the longer the term is for the CD, typically the higher the interest rate, however this does not always hold true. Finally, the last factor in the difference of CD rates between banks is the size of the institution. Smaller banks will often offer higher interest rates in order to lure business away from the larger banks, which offer greater perceived stability and ease of access with a greater number of branches. Truth is, all CDs are insured by the FDIC, so the size of the bank has no bearing on the stability of the CD. It does however have an effect on the CD rates, so that is something the smart CD rate shopper should keep in mind.

Depending on where a person lives, it can be easy or difficult to shop for different CD rates based on the number of banks in their area. Many people prefer to deposit their money in a local branch or in a place where they can at least see the people they are giving their money to. This can limit the choices people have when it comes to CD rates. Other banks in other parts of the country may be offering better CD rates, but if a person is unwilling to send their money to another location, they may miss out on better CD rates.

The internet provides perhaps the greatest resource when it comes to CD rates. Many websites are dedicated to showing the best CD rates based on size of deposit and length of term. A smart investor will shop around for the best CD rates, and the internet is a great place to start. Although their money may be in another state, the increased CD rates can be worth it.