CD Rates - Finding the Best Deal on Certificates of Deposits

Get the best CD rates possible, but avoid missing out on future investment opportunities.

Certificates of deposits are one of the safest ways to invest your money for the future, much like a Treasury bond. Cd rates offer some of the highest rates of return that you can receive as an individual without risking any losses. Since they are insured by the FDIC by up to $250,000, there are virtually no risks. Still, it is worth your time to look for the best CD rates available, in order to get the most for your money.

Check Online

Some of the best rates can be found through online banks. Certificates of deposits offered by online banks often earn a higher interest rate due to the fact that the bank has fewer operational costs. There are also several different online marketplaces that you can take advantage of in order to find the best deals available.

Brokerage Firms

While CD rates offered by the bank can often be quite competitive, it is often possible to do even better by getting in touch with a brokerage firm. Financial advisers can often gain access to brokered CDs. These often offer the best CD rates available. This is because of the fact that the brokerage firm can offer access to a very large number of certificates of deposits, which allows them to negotiate better rates.

Check for Local Promotions

In many cases, a small local bank will end up in a situation where a large number of deposits are required. When this happens, a bank will often have a "sale" on certificates of deposits. This means that they will offer them with higher interest rates that usual, giving you a better return on your investment.

Consider the Term

The longer the term of the certificate of deposit, the higher the interest rate generally is.

The best CD rates are almost always offered on longer-term CDs. It is important to pay close attention to the economy when considering whether or not to invest, however. Rates can change rapidly, and if the economy is expected to improve in the near future, a good rate now could be a bad rate tomorrow.

Stacey Nelson

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