How to Find the Best Interest Rate Bank CD

Finding Highest Interest Certificate of Deposits

By TurtleDog

Find the Best Interest Rate Bank CD

There's more to finding the best paying Certificate of Deposit than just reading the newspaper. Read on to learn how to Find the Best Interest Rate Bank CD

Difficulty:

Easy

Instructions

1. • Step 1
     Let's dedicate the first three steps to some cursory research. First, check the ol' newspaper. Newspapers still post cd rates in their business/financial sections. Write down the best rates from the most recognizable institutions
     
   • Step 2 
     Then check the internet for CD rates. Simply type in 'best cd interest rate' or something similar and tons of CD lists will appear. Write down the best rates from the most recognizable institutions. BE SURE TO note the APY (annual percentage yield) as this will truly tell you the interest rate you'll actually have earned at the certificate's maturity
   • Step 3
   •  
     Do you have a financial adviser? Do you have access to one (for free?). If you do, ask them too, but also compare their advice to what you find in steps 1 and 2
   • Step 4
     Now, you've accumulated some of the highest rates from the most recognizable institutions, contact these institutions and verify 1) the interest rate (specifically the APY or annual percentage yield) 2) the amount of time until CD matures (ie how long your money is tied up until you can get it 3) Verify the minimum investment and 4) How often is the compounding (daily, weekly, monthly, etc)
   • Step 5
     Write down the top three CDs that have the highest interest rate (remember APY!! ) with the most compounding. More compounding, such as daily instead of weekly, means you are earning more interest more regularly. This adds up to more money
   • Step 6
     Then look at these 3 cd's and determine which one's have BOTH the right minimum investment you can afford AND the amount of investment time that is right for you (the longer until the CD matures, the more time you can not touch that money)
   • Step 7
     Lastly, since we are looking at bank certificates of deposit, be sure the certificate you select is FDIC insured. If it isn't, and you still want it, at least be sure that the non FDIC insured CD makes WAY more interest than the insured ones. FDIC guarantees you'll get your money back. Anything else, if the bank loses it, you lose it.
   • Step 8
     Following the above steps should insure that you 1) find the CD with the best interest annual percentage yield (APY!!) 2) With the most compounding 3) that has a maturity period you are comfortable with 4) with a minimum investment you can afford
   • Step 9
     Thanks for reading my How To Find the Best Interest Rate Bank CD