How to Find the Highest FDIC CD Rates
A certificate of deposit is a low-risk investment offered by banks that is insured by the Federal Deposit Insurance Corp. (FDIC). The FDIC insures CDs to the same extent that it insures any other bank deposit: up to $250,000 per depositor and per bank. The rates of interest on CDs and their duration will vary depending on the bank offering them. In many cases, you can find them for durations of three, six, nine, 12, 18, 36, 48 and 60 months. You must search multiple banks to find the FDIC-insured CD with the highest interest rate.
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Instructions
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Choose the type of CD that you want to purchase, based on its duration and the amount that you are able to pay. Generally, CDs of longer duration will have higher interest rates. Another factor to consider is how often you would like the interest to compound --- the more often the interest compounds, the more interest you will earn. The compounding options are usually monthly, quarterly and daily.
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Contact local banks to request CD interest rate information. When you contact the bank, state the type of CD that you are interested in purchasing based on its duration, how often it compounds and how much money you are willing to deposit. Some banks charge a minimum deposit, such as $500 or $1,000, so ask whether the bank has a minimum deposit for the CD in which you are interested. Write down the interest rates from every bank that you call.
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Research the interest rates offered by Internet-based banks. Ally Bank, Emigrant Direct and ING Direct are examples of Internet-based institutions that offer CDs. Often, due to their lack of physical branches, Internet-based banks can offer more competitive interest rates than traditional banks. Compare the interest rate information obtained from the traditional banks with the information you get from the websites of the Internet banks.
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Choose the CD that has the duration you want at the highest interest rate.
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Tips & Warnings
You can also obtain comparison information on CDs offered by multiple banks in your area, as well as those offered by Internet-based banks, by using a CD rate-comparison website, such as Bankrate.com or Interest.com.
