The best CD accounts will provide higher interest rates from a standard savings account or checking account. If you want to earn high yields, CD accounts are the way to go.
How do CD Accounts Work?
A CD account is offered by banks and credit unions as a way to help savers earn extra interest for their deposits. A CD account is different from a standard savings account in several ways.
CD Terms – CD accounts have specific terms related to how long your money must remain locked in the account to earn interest. A bank will provide a variety of CD account ranges from 3 months to 5 years. If you want to earn the best CD account rates, you need to plan on a long-term CD account.
Withdrawal Penalties – If you need to access your money before the agreed term date, you will face an early withdraw penalty. The penalties will vary based on the CD term. The fee is normally calculated as a percentage of the interest earnings (3 months interest or more). If you need immediate access to your money, consider an online savings account instead.
Fixed interest rate – Once you lock into a CD account, you will earn a set interest rate over the duration of the term. If interest rates rise, your CD account interest rate will remain the same. This is the risk you take, however, stagnant interest rates on savings accounts have proven CD account rates to be a smart investment strategy for savers.
How to Find the Best CD Account Rates
Where can you find the best CD account rates? We provide helpful tools to give you information related to CD Accounts. We can help you find a CD account at local banks, or online banks, where the CD account rates tend to be higher. When you want to find ways to increase the yield on your CD account, consider the following:
CD rates and promotions – You need to take a look at current CD rates and promotions by your local bank and online bank to find the highest CD rates. If you have used the same bank for several years, ask them about CD accounts. Some banks will reward customers for their loyalty, and they will provide you with higher interest rates on CD accounts.
Special CD accounts – Some banks have unique promotions called a “bump-up” CD account. The bump-up CD gives you a chance to increase the interest rate twice on your CD account, or the opportunity to withdraw funds once without a penalty. Individuals using CD ladder strategies will benefit from the bump-up account as it gives you a chance to earn higher yields from long-term CD accounts.
CD Account Reviews
To find the right CD account for your needs, take a minute to read our in-depth CD account reviews. Click on any of the bank logos to learn more!
CDAccount offers CD Account bank reviews. We help you find the best CD rates to help you grow your savings account. Find out tips on how to earn more from CD Accounts and get the latest financial news and tips from our blog.