Certificates of Deposit or CDs as they are commonly referred to, is a terrific place for investment funds when you want to earn more than what the usual savings accounts pay for interest rates. Certificates of deposit are great for both a short term and long term investor. The longer the term for your CD the higher the interest rate paid. Whether you are a long or short term investor, finding the best rate for your Certificate of Deposit is the ultimate goal.
Getting the best rates possible for CDs requires some investment research on your part. You can check more than a few different sources for comparison of CD rates. Knowing where to look is half of the battle for finding the best place to invest your finances.
Local newspapers have advertisements taken out by banks and lending institutions that advertise their rates for money market accounts, savings accounts and certificates of deposit. These can be found in daily or Sunday editions of many local papers. National papers such as the Wall Street Journal that will advertise nationally for many CD rates and almost all of these paper sources of production can also be found syndicated online. Many times lending institutions will have promotional rates for limited times and if you happen to be fortunate enough to get in on these you can really get a fantastic deal.
Some of your research may not take you far from home. For some customers that already have a Certificate of Deposit at a lending institution, find out if you have the best interest rate at this time. Interest rates are subject to change and what they were several months or even last year may have changed for the better as of today. Ensure you have the best interest rate available with your current bank.
The longer the length of time you have your CD invested, the more interest is earned. Can you afford to invest in a CD for a long period of time? If yes, do invest your CD for a longer length of time in order to get a better interest rate. You can reinvest with the same lender or with a different lender that has a higher interest rate.
There are several sites on the web that compare Certificate of Deposit national interest rates. Online websites such as BankTruth.org are excellent for comparing investment opportunities between banks and other lenders. One of the highlights of the site is their terrific comparison of CDs. They are renowned for their wonderful comparison of all things finance.
Make certain that you understand the conditions and terms of your Certificate of Deposit before investing with any lending institution.