Things You'll Need:
- Internet access
- Printer
- Phone
- Pen and paper
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Step 1
Determine the term of your IRA CD. Some people prefer shorter time periods when it comes to investments, such as 6-month certificates of deposit, while others enjoy the sometimes-higher rates of 3- or 5-year CDs. Use your discretion and think ahead to figure if you'll need to withdraw the money for a certain purchase in the future.
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Step 2
Make a list of local banks. Most communities and towns have a number of banks and/or financial institutions within a reasonable distance. Create a list of the banks nearest you and start making phone calls to inquire about their current rates for IRA CDs. Interest rate and APY (annual percentage yield) data can vary widely from bank to bank, which is why it's important to shop around for the best rates on an IRA CD with the term of your choice. As you gather information, write down the rates so you can compare them later.
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Step 3
Compare IRA CD rates through bank websites. Rate information can be found in a central location on many banks' websites and customized to the rates available in your particular location. For example, go to the website of a major bank, such as Wachovia, and click on the link for "Savings and CDs." The following page will prompt you to enter your zip code in order to provide personalized interest rates for the bank's products, including IRA CDs. As you go from website to website, print out or write down the rates that you find appealing.
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Step 4
Check Internet banks, too. There are a number of banks that only conduct business online (or sometimes, also by phone). And because of their lower operating costs, they can offer interest rates on IRA CDs that may be substantially higher than regular brick-and-mortar institutions.
