How do I get the Best Certificate of Deposit Interest Rate?

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  • Written By: A. Leverkuhn
  • Edited By: Andrew Jones
  • Last Modified Date: 10 February 2020
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Getting the best certificate of deposit interest rate in any kind of economy means researching various savings investment schemes and choosing the ones that offer the most benefit. A certificate of deposit is one of the rare kinds of agreements where an “average” consumer is the lender, rather than the borrower. In vehicle financing, mortgage deals, and other common transactions, it’s the other way around. Being in the lender’s seat with a certificate of deposit interest rate requires some legwork in order to benefit from the highest available interest rates on the market.

Those with available capital to put in a certificate of deposit (CD) will have to shop around to see which banks offer the highest interest rates. A higher interest rate means that the account holder will gain more money in interest each year. For a CD, a cash holder can also look at longer terms for maturity, which can often raise the interest rate for a certificate of deposit.

Some of those who benefit from a better certificate of deposit interest rate are willing to look in some unlikely places. Credit unions, where employment or other affiliation may be necessary, can sometimes offer better CD interest rates than big banks. The same is true for “community banks” or other smaller institutions that have more demand for smaller deposits.


Another huge tip for getting the best CD interest rates is to know the options for other interest gaining alternatives. A money market account is another simple savings account that may earn higher interest rates. Beyond this, those with available money can look into “investment type” accounts available through a brokerage. These include bond funds, micro-lending, mutual funds, commodity index funds, and other funds that offer specific risks with detailed projected yields. By taking on a bit of risk, investors can often get larger gains than they can with rock-solid CDs, but not every cash holder wants to expose their savings to risk, so the whole effort to find the “best” interest rates often includes a “soul-searching moment,” where the consumer analyzes his or her own appetite for risk.

Those who are looking for good certificate of deposit interest rate offers have to be aware of the economic context. In times when central banks have cut interest rates down to record lows in order to facilitate lending, certificates of deposit are not going to offer competitive interest rates the way they do in boom times. In order to find the best interest rates for a CD, potential investors need to compare current and realistic rates when they are shopping for savings opportunities.



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