Archive for June, 2009
When a person decides that they want to put their money into a CD, it usually means they are willing to sacrifice some kind of capital gain for security. That doesn’t mean, however, that they will be happy earning nothing for their money. That’s why it is so important to shop around for really good bank CD rates before committing to just one. This can be done online, through financial magazines and sometimes, if an investor wants to stay local, through their local newspapers.
The key to finding the best bank CD rate is to give yourself plenty of time before needing to commit to another CD. If the money you are considering putting into a CD is currently in a CD and you are unhappy with a return, you might want to start shopping for a good bank CD rate about a month before your current CD comes due. This will help to ensure that you get the higher rate of return that you saw advertised.
Where, though, does a person look for the best bank CD rates? Are there even any good CD rates out there to be had right now? Any investor needs to know that CD rates aren’t nearly what they were 10 years ago, but if you’re more interested in protecting your money, it could be the way to go.
See if you can work with your current bank for a good CD rate. If you have a relationship with your financial institution, it might be the time to put your money to work for you. Often, in the interest of keeping your money with them, they will work to get you a better rate on your CD. If not, that’s okay, move on.
If you’re comfortable with banking online, consider online banks, such as ING Direct to find the best bank CD rate. Often, since you’re not dealing with the overhead of many different branches of banks, you will find that some of your online financial institutions are able to offer substantially better CD rates than their counterparts with offices.
Another way to find a really good CD rate right now is to check around locally. There are many smaller banks who haven’t been forced to request stimulous money or had any kind of financial troubles. These might be the banks to go to for a good CD rate right now, as they can most likely afford to pay out higher interest rates on your CD.
Always remember that you shouldn’t be afraid to shop around for a good CD rate. Afterall, it is your money.