Rates on Certificate Of Deposit are dropping again so it becomes even more difficult to look for CDs that are paid in reasonable rates. Even so, Certificate Of Deposits are still regarded as the most important financial tool for many people. For others, a CD is the best and safest investment. Others invest in CDs to add their retirement pension. But we all want to have the highest rates for our Certificate of Deposits.
Getting Good Rates On A Certificate Of Deposit
A Certificate Of Deposit is a good investment choice because they are very safe without the market risk – a CD would not change in value whenever the stock market goes up or down. A Certificate Of Deposit is also insured for as much as $100,000 USD by the FDIC
Because CDs are so safe, even the best rates on a Certificate Of Deposit are lower than most other investments but the best CD rates are generally higher than the highest money market rates.
How To Earn The Best Rates On Your Certificate Of Deposit Without Increasing Risk
One solution is to avoid traps that many people fall into. Do not stay with the same bank year after year simply because you are doing your banking to them and you got used to them. Take note that when you stick with your old bank, you will miss the chance of earning the highest CD rates from other institutions.
Shop around for the best CD rates. Check out other banks and financial institutions in your locality or in other states. As a mater of fact, the best CD rates are offered as much as 40% higher than the others – sometimes even more.
Check CD rates that are offered by online banks because they are often the highest available. They are better compared to your “brick and mortar” banks. Usually, they pass the savings in the form of higher interest rates. As long as these are insured by FDIC, they can be as safe as your banks down the street.
Tips When Finding The Best Rates On Certificate Of Deposits
Before choosing the product even if it has the best rates on Certificate Of Deposit you need to ensure the financial company is legit and stable. Doing this extra research is very important to ensure your investment is safe. Some of the things you can do are listed below:
- Check the financial institution’s financial strength ratings at TheStreet.com or you may just download their comprehensive report providing the details about the rating of the financial institution.
- Log on to FDIC Insurance to check whether the financial institution is insured or not.
- Learn more information about your local bank. You can do this by simply knowing where it is headquartered or simply go to FDIC’s Online Bank Locator Service.
If everything looks good then you can purchase your Certificate Of Deposit and make more money long term.