With so many different banks claiming they have the best CD rates, how do you know if the rates you are receiving are the best? You could browse every bank’s websites to try and find which bank offers the best CD rates, or you could simply look at the cd rates chart on Ratecatcher.com to help you with your decisions. Before you decide on which bank to choose, take a look at what makes up CDs, and how to receive the best CD rates available.
What is a CD?
A CD is an abbreviation of certificate of deposit. This type of bank account is similar to a savings account in that both accounts are generally risk free. You can gain interest on your money, but the interest gained doesn’t depend on the stock market or the economy. Unlike saving accounts, CDs require you to keep your money in the account for a certain “term” with a specific “maturity date.” CD terms can range from days to years, depending on your needs. Be aware you could be charged a fee if you withdraw the money before the maturity date.
CDs are also different from saving accounts and money market accounts in that you gain more interest on your money. While different banks have different CD rates, most banks tend to offer the best CD rates if you can keep a large amount of money in the account, and can keep it in the account for a long period of time. CDs with terms of three months are going to offer lower interest rates than those with a term of five years.
Banks across America offer CDs with different rates to help customers find the best CD to fit their needs. The terms and conditions of CDs generally stay the same from bank to bank. The CDs vary through the required amount needed to open the account, the term, the early withdrawal penalty and the interest rate on the account. To make the process of finding the best CD rates easier, take a look at the cd rates chart listed on Ratecatcher.com.