Planning your financial future is something that not enough of us do but everyone should do. Finding a good high interest CD should be part of your financial investment strategy because they are government insured.
CDs earn higher interest rates on your money than you’d get on a savings account. So if you want a FDIC insured account a certificate of deposit is the best type of account you can get.
Stocks, options, and forex trading all have their place, but none of them have a guaranteed return on your investment like a CD does.
Once you know you want to open a CD you need to find a high CD interest rate. The best place to do this is the internet. You could go from site to site to check each bank’s CD rates, but an even better way to look up CD rates is to go to a comparison site. This way you can look at the high interest CDs from several banks at once instead of wasting your time going from site to site.
What else do you need to consider when opening a CD? CDs usually have minimum deposit requirements. Each bank has different requirements so be sure to keep that in mind when checking on interest rates. Banks will sometimes also offer tiered interest rates on their CDs. So they might offer a higher rate if you deposit $50,000 than if you deposit $5,000. Be sure to know if a bank does offer higher rates for larger deposits at what the levels of the tiers are.
Additionally, you get higher interest rates for longer term CDs. You’ll get a higher rate on a 5 year CD than you will on a 6 month CD. However, since CD rates are so low right now, you probably don’t want to lock in to a long term CD even if the 5 year rate is higher than a 6 month CD. You should get a shorter term CD in hopes that the interest rates will rise sometime in the near future.