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Step 1
Is a CD the right saving vehicle
Decide if a Certificate of Deposit serves your saving needs. Generally, CDs are insured by the FDIC and don’t have a required minimum amount. They have a maturity schedule; you will pay a fee if the CD is redeemed early. CDs rates may be better than checking or saving account’s rate. Most financial institutions can sell certificate of deposits. -
Step 2
Shop around for CDs
Shop around on the internet for the best CD rates. Use a free CD rate comparisons service. These services offer a list of financial institutions with the rates paid on CDs. Review the rates, the minimum amount (if any), the FDIC insurance and fees for early redemption. -
Step 3
Find the best CD rate
To get the best rate on a CD, consider buying a longer maturity CD with a minimum required investment, and no fees. Take a look at Credit Unions, Saving Banks and Brokers. These institutions generally offer higher rates and their CDs are FDIC insured. -
Step 4
Open an account
Open an account and buy the Certificate of Deposit. Expect to receive confirmation on the mail from the institution. Most companies send a notice; very few still use an actual paper called "Certificate of Deposit".













