While it may be a challenge to find high interest banking products, it doesn’t mean that there are no high interest CD rates left anywhere. If you know where to look, you can still find interest high interest. Here are four tips on how to find the best high interest CD rates.
1. Most of the best rates are offered by Online banks.
There are several good Online banks out there, and many of them offer high interest CD rates that are better than any traditional bank.
2. Longer terms usually translate to higher rates.
If you are willing to leave your money in a CD for at least five years, you can get rates two or three times higher than typical 12-month rates. In general, when you invest your money into a CD, it needs to be money you won’t need for the duration of the CD term, as removing your money early usually incurs a penalty.
If you have $ 1,000, or more that has been sitting in your savings account, shift it into a CD. A CD will offer you a higher interest rate, and if you know you won’t need the money for several years, you can choose high interest CD rates for five, six, or seven year terms. This length of term is perfect, for example, for a college fund or other long-term savings plan.
3. Good things come to those who wait.
On the other hand, some experts argue that leaving your money in a CD for longer than five years is foolish, especially in today’s volatile market. With the economy still slowly recovering, it’s likely that CD rates will rebound in the next few years. Therefore, another strategy for getting the best CD rate is to put your money in a 12-month fixed rate CD, then check again after 12 months to see how the rates are looking.
4. Wait for deals.
Just as Wal-Mart puts things on sale to move their products a little faster, so do banks. At any given time, banks in your area or banks online might be offering a special CD rate for a certain term. These “CD sales” are a great way to get a rate that’s better than what you would normally be able to find.
By following these tips, you will be able to find and take advantage of the best CD rates available and ultimately make the best out of a tough savings market.
Charly Dimatoni writes out of Chicago about different investment opportunities, including what to look for to find high interest CD rates. Always looking for a trusted financial institution for advice and tips she tends to look up information at http://www.aurorabankfsb.com/consumer more often than not.