Best CD Rates

Top CD Rates, Ever So Briefly (Feb 3, 2012 16:18)
Bank of Internet USA briefly had top CD rates this morning because of a computer glitch.

Low CD Rates Make Me Less Charitable (Feb 3, 2012 12:00)
Last week, Ben Bernanke assured us that “we are not unaware of the problems that low interest rates ..

State Employees’ Credit Union, One Of Nation’s Largest, Offers Top CD Rates (Feb 2, 2012 20:00)
The 1.7 million members of State Employees’ Credit Union in North Carolina have access to far better..

60-Month CD Rates Deal Available To Anyone Who Lives In California (Feb 1, 2012 20:30)
All Californians can take advantage of Patriots Federal Credit Union’s top 60-month CD rates. It’s p..

Melrose Credit Union Cuts CD Rates (Jan 31, 2012 21:31)
While the New York-based credit union cut rates in all its terms, it saved the largest cut for its 6..

Bank That Offered Top CD Rates Seized (Jan 30, 2012 17:26)
Regulators on Friday closed Tennessee Commerce Bank, which had been one of two banks to offer the to..

Washington Metro Deal On 3 Top CD Rates (Jan 29, 2012 12:00)
D.C.-area savers will find a trio of strong CD rates at 1st Commonwealth Bank of Virginia.

Two Banks Tie For Top 3-Month CD Rates (Jan 28, 2012 12:00)
Three-month CD rates haven’t been good in ages — that term didn’t break 1% on our CD Rates Leaderbo..

Western Deal: 60-Month, 2.25% CD Rates (Jan 27, 2012 20:30)
Seattle-based Washington Federal has 60-month CD rates that certainly aren’t typical for a big bank…

Find The Best 5-Year CD Rates Now (Jan 26, 2012 20:30)
The top deal on our CD Rates Leaderboard now pays just 1.95% APY. But that doesn’t mean you can’t fi..

Finding the Best CD Rates
To find the best rates on CDs, you need to do some research, a lot of which can be done online. First, a little on CDs themselves. A certificates of deposit (CD) is a very safe investment vehicle-one of the safest in the market for investors. Up to a certain limit (as regulated by the FDIC), your funds are insured. Although CDs offer low-risk, this low risk also comes with relatively low returns. Therefore, searching for the best CD rates is a worthwhile exercise.

Why Certificate of Deposits Pay Higher Rates

A CD will pay higher rates than a savings account, as the investment you put into a CD cannot be accessed for the duration of the CD. Investing in a CD is not difficult; simply go to your bank or any other financial institution offering CDs and tell them you’re interested in investing in a CD. After filling out a form and receiving instructions on how to transfer funds, you’ll have yourself a CD.

Your CD will pay you interest, which you may either spend or reinvested to earn more interest (this is called compounding and is recommended as it will grow your investment faster). At maturity, you will have a few days to decide on whether to take your funds or roll them over into a new CD.

Looking around for the best CD rates is worthwhile, as a difference of a few tenths of a percentage point in a rate adds up over time. CD rates are quoted in terms of annual percentage yield (APY). Before you invest, compare the APY for different CDs with the same maturity and investment amount.

There are several places to look to find the best CD rates. Check with your banking institution on their current CD rates. Using these rates as a benchmark, do research on the Internet to find even lower rates. Institutions sometimes offer “sales” or “deals” at various times during the year on their rates to attract investors. Many online resources exist, such as bank websites, online-only banking services, personal finance blog sites that track CDs and are knowledgeable about the best rates being offered, and brokerage firms. Brokerage firms have access to large blocks of CDs that they trade and thus may be offer better rates than banks.

When doing your research, be sure that you are comparing apples to apples. CDs with longer maturities typically have higher rates than CDs with shorter maturities, as your money is tied up for a longer period. Compare 10-year CD rates with other 10-year CD rates.

Jumbo CD Bank Accounts

In addition, compare rates for the same investment levels; for example, many institutions offer better rates for larger, or “jumbo”, investments for CDs of the same maturity. Bank A may offer a 5% APY for a three-year CD over $100,000 but a 4.5% APY for a three-year CD of $25,000.

Since exceptions always exist, do your research carefully and thoroughly, and you may find a nice surprise. Keep in mind that banks will often give their most valued customers special rates on CDs. Sometimes, to qualify for a higher rate, you may need to have a certain minimum investment with an institution, and consolidating your holdings with a few financial institutions may be worthwhile.