Best CD Rates
A certificate of deposit, known more widely as a CD, is a relatively risk-free investment classified as a time deposit. Investors deposit their funds in to a CD much like a savings account and much like a savings account those funds are FDIC insured. However CDs have a fixed term, meaning the principal deposited cannot be withdrawn for a specified period of time, usually 3 months, 6 months, 12 months, up to 5 years. This is in exchange for a higher interest rate. When the term has elapsed, the CD is said to have reached maturity. It is upon maturity that the CD can be redeemed for the principal as well as the interest it has earned during the agreed upon term.
Bank CD rates vary based on a couple of factors. Generally the longer the term of the CD, the higher the interest rate offered. When the investor commits to a longer length of time, it affords the bank more flexibility in what it does with the money entrusted to them. They are able to scatter this money over a broader range of purposes and are able to extend a higher rate in exchange. Bank CD rates also fluctuate because of the current interest rate environment, rising or falling in order to stay competitive and reel in business in today’s financial climate. For this reason it is imperative for those looking to invest in a CD to research several banks in order to find which offers the most lucrative bargain. It is also beneficial to research rate trends in order to know whether a shorter or longer term is in the investor’s best interest. If rates are on the rise, a shorter term might be more profitable.
Withdrawing funds before a CD reaches maturity typically incurs a substantial penalty, usually the loss of several months’ worth of interest. These penalties exist in order to discourage investors from redeeming the CD before the specified term has elapsed. Sometimes a bank will reserve the right to “call” or buy back the CD after a specified period of time but before its maturity. These CDs generally have a higher yield and the bank will call it after if rates drop, however the investor does not have the same ability to call the CD and will be locked in to a lower rate if interest rates rise.
When a CD is set to reach maturity, the bank will notify the investor to receive instructions on how to proceed. On average they offer the option to rollover the CD’s principal and accrued interest in to a new CD. It is also common practice for the bank to automatically rollover the funds in absence of any directions from the certificate holder, further tying up the investor’s funds for another CD term. It is important for depositor’s to understand the terms of their CD upon investing. One of the benefits of CD’ s is that the best CD rates are available to anyone. We have listed below the best CD rates as well as deposit minimums.
Looking For Higher Yielding CD Rates
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Alliant CU CD Rates
AIG Bank CD Rates
American Express Bank CD Rates
Bank of Internet USA CD Rates
Chartway FCU CD Rates
Discover Bank CD Rates
First City Bank CD Rates
Incredible Bank CD Rates
Pentagon FCU CD Rates
Southeast Financial FCU CD Rates
AmTrust Direct CD Rates
Ascencia Bank CD Rates
Fort Knox FCU CD Rates
KANZA Bank CD Rates
Virtual Bank CD Rates
RiverLand Credit Union CD Rates
H & R Block Bank CD Rates
ISN Bank CD Rates
Giantbank.com CD Rates
Acacia Federal Savings Bank CD Rates
Addison Avenue FCU CD Rates
Bank of Fayetteville CD Rates
American Bank CD Rates
Country Bank for Savings CD Rates
EverBank CD Rates
First National Community Bank (PA) CD Rates
First Chicago Bank & Trust CD Rates
Jacksonville Bank CD Rates
Navy FCU CD Rates
Palladian Private Bank CD Rates