A fixed deposit is a certificate of deposit that has a fixed interest rate. The fixed portion of this type of certificate of deposit is twofold because the interest rate earned is fixed and the time period for the money is deposited is also fixed. To get the best fixed deposit interest rate, you need to first narrow down the certificate of deposit options so that the term, interest rate and initial deposit amount all fit your financial needs and desires.
An advantage of a fixed deposit interest rate is that it is stated up-front how much of a return on investment the money will earn. In conjunction with identifying banks and credit unions that offer the highest interest rates, find the certificates of deposit that are for a term you can go without accessing your money. For example, if you choose a six-month certificate of deposit, you will have to deposit your money and not access it for six months. With a one-year option, the money is not accessible for one year.
Longer term fixed deposit interest rate certificates of deposit tend to be higher than the rates of the shorter-term options. While the longer term options may seem like a better deal, you have to find a certificate of deposit that has a high interest rate, but also is the time frame you want. In other words, the interest rate is not the only characteristic that should be considered to get the best fixed deposit interest rate.
When contacting banks and credit unions to find out information on the certificates of deposit it offers, gather information on the deposit amount required. Each certificate of deposit has a minimum deposit requirement. Some minimum deposits are as low as $250 US Dollars (USD), while others are higher at thousands or tens of thousands of dollars.
To find the best fixed deposit interest rate, list out those certificates of deposit that fit all of your criteria. The criteria include those with a high enough interest rate, that offer an acceptable term of time without access to the money and that fit the amount of money you want to invest. Once you narrow down your choices, the option that fits all of your criteria the best is the best fixed deposit interest rate certificate of deposit for you.