Bank CD Rates

Bank CD Rates

By Tom Tessin

With today's tough economy, it's no wonder why many people are turning to the CDs. Why are people turning to certificate of deposits? Now the question is where you can find the best bank CD rates?

Start using services online where you can find the best rates. Never ever just sign up for the first CD rate you see because you're just asking for trouble. Your typical brick and mortar stores usually have the worst rates. This is why I would recommend you bank online.

You'll find that some want you to invest $25,000 at the beginning while others will only want you to invest $5,000. Make sure you know what you can afford to invest and what you can't because generally the more you invest, the more you can get in terms of your rate.

In the end, I'm going to tell you right now that if you want a great deal, you're going to have to do your banking online if you like it or not. My local bank doesn't even compare to the online banks.

When you are finally ready to invest into a certificate of deposit, it's important that you look at a few factors before you pull the trigger and invest your money with a bank. Just because a bank offers a great rate doesn't mean it's going to benefit you financially in the long run.

Make sure the bank is legit

Before you even start looking at the banks rate, make sure that bank is FDIC insured. If the bank isn't insured, stay away from them right away. A great way to see if a bank is FDIC insured is to either check the FDIC official web site at FDIC.gov or look for a FDIC logo on the banks web site.

Know what you want

When you start thinking of CD, think of how long you'll want a CD for and how much you're going to want to invest. Most banks have a minimum investment when you're looking to invest in a CD. Remember, once you money is invested in a CD, it will be locked in for that term.

The length of CD

When you're looking at the length of the CD, make sure that you make a mental note that you won't be able to touch the money without a withdrawal penalty. This means that you should budget for the length of the CD without that money. This means that if you invest $10,000 for example, you will have to pretend that you don't own this money at all.

Reviews on the bank

Like a lot of things you purchase in your lifetime, it's always nice to get a review on the bank before you invest into a CD. Sometimes, people find that it's hard to work with banks with they try to close their CD account.

Looking for a CD shouldn't be a challenge. There are a lot of web sites that focus solely on CD rates. Web sites should make your search a lot easier. When you do find the perfect CD, make sure that CD is under a FDIC insured bank and make sure it's a competitive rate. If you find the right CD and a great rate, it can do wonders for your money.