CD Rates Comparison Guide

By: EconomyWatch Content Team   Date: 26 February 2010

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Any time a Certificate of Deposit or CD is being considered as a means of savings, it is critical that CD rates comparison be done. With this type of investment, you need to find the best rates being offered.  Although CDs are low risk and typically interest rates are much higher than you would get from a standard savings account, you will need to look at different financial institutions to see what each offers.

When you do a CD rates comparison, you have the chance to invest your money and enjoy the greatest return on this investment.  Keep in mind that while the returns for a CD are higher, different conditions for CDs vary from one issuer to another.  The strategy associated with a Certificate of Deposit is to invest money for a determined about of time whereby at the end of this time, the CD matures, giving you the most for your investment.

Because you are locking your money up during this period and not having access to it unless you pay a huge penalty, you want the interest rate and Annual Percentage Yield that is going to pay the most.  The only way of identifying the higher rates is by performing a CD rates comparison.  This way, you actually maximize the return on your investment, which is what you want.

The process involved for a CD rates comparison is to look online although you could also work with a bank or credit union.  The benefit of making comparisons online is that you can find a number of tables and charts that give you a bird’s eye view, making the CD rates comparison much easier.  Typically, these tables and charts provide national rates although there are some that also include local rates.

Below we have provided some great websites where you can do a CD rates comparison and while they all work slightly different, the process involves answering certain questions and making a few decisions so you can get to the rates that you want to review.  Again, options to do a CD rates comparison will vary from one website to another, most would include the following:

·    National versus local CDs
·    Term of the CD investment
·    Specific CD type
·    Amount of money wanting to invest

After providing this and perhaps other information when looking at a CD rates comparison online, you will be offered calculating tools.  As you go through these, you will have the benefit of seeing what banks, whether locally or nationally, offer for Certificates of Deposit.  Keep in mind that requirements also exist.  In other words, you need to pay close attention to requirements for the various financial institutions and CDs you want to consider in that the minimum amount of investment would vary along with rates.

It takes a little time and effort to make a CD rates comparison but this time would yield the best choice for your needs.  As mentioned, the following are just a few websites where these comparisons can be made.

·    www.bankrate.com
·    www.bankaholic.com
·    www.money-rates.com
·    www.citibank.com
·    www.comparecdrates.com
·    www.bestratecds.com
·    www.bestcashcow.com


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