How to Find a List of the Highest Yielding Certificates of Deposit
In turbulent financial times, investors often look for the safe and secure rates that certificates of deposit offer. However, your local bank may not have the best yielding CD for you. That's why an online search of these resources is needed to secure a list of high rate certificates of deposit.
Other People Are Reading
Instructions
-
-
1
To begin, investors must know a few things before they can invest in a high yielding CD. Investors must choose their length of investment term and initial investment amount. Many CD's offer higher interest rates for longer terms and larger investment amounts, however, there are risks involved in stashing all of your money in a CD. Risks such as inflation and having to forfeit some of your interest in the form of a penalty for cashing in your CD before the term is up.
-
2
Next, choosing a CD term:
1 Month: Low rates, quick access to your money.
3 Month: Still low rates, better than 1 month, short term place for cash.
6 Month: Rates a little bit higher, a good place to stash your savings while waiting out a stock market downturn.
One Year: Decent rates. Medium term investment.
Three Year: Better rates than one year CD. Good Place to keep savings while saving up a down payment for a house or new car.
Five Year: Usually the best rates for a CD. Locked in to the CD rate for a long time, unless you cash it in and pay the penalty. Ideal for the retired person looking for safety and protection of their principle with a modest return on investment.
-
-
3
Then, deciding how much to invest in a certificate of deposit:
Less than $1000.00 dollars: Generally lower yielding, especially for shorter term CDs.
More than $50,000.00 dollars: Higher yield for larger investment. Sometimes part of a promotional offer for 3 month, 6 month, and 1 year terms.
More than $100,000.00 dollars: Jumbo CD. Minimum $100,000.00 dollar deposit. Increased yield for larger investment. Many banks offer special promotional CD rates to attract investors looking for higher rates of return.
-
4
Finally, searching for the best yielding CD:
Bankrate.com - This is the spot to begin your search. Bankrate offers a through CD rate search feature. Banks from all over the country are included in this online search tool.
Fatwallet.com - Active forum of members sharing financial resources, including CD rates.
Check resources section below for links.
-
1
Resources
- Photo Credit gravityx9
More Like This
Comments
-
Jenny Powers
Mar 05, 2009
I found one at 7%!
