At First Look the Highest CD Rates Don’t Seem That High

Seeing interest rates on deposit accounts so low these days is depressing. If you're new to certificate of deposit (CD) investing you're probably shaking your head wondering what type CDs to invest in and where are the best CD rates. You probably see ads for "high yield CD rates" that are not high at all but if you compare these advertised rates to the national average CD rates available the rates don't look that awful.

For example, right now the current national average 1 year CD rate is at 0.44% but there are many bank CD ratesthat are higher than the average. Aurora Bank's 1 year CD rate is at 1.11% with an APY of 1.15%, almost three times the national average. A good quick way to find the highest CD rates is by comparison shopping online. 

Before you invest in a CD you should have a complete understanding of all types of CDs including all the aspects and terms of each. You should also make sure to read and fully understand the disclosure statement which will have some hidden surprises which don't work out in your favor. This information can help you decide if you’re picking a CD that’s appropriate for your investment needs.

As with any investment choice you make you should also know what your goals are with this investment and when you will need access to the money you plan to place in a CD. CD investing isn't only finding the highest rates available, the other big decession to make is what CD term do you want to invest in. CD deposit terms can range from a day to 10 years.

You can compare CD rates from several banks and credit unions by using our CD rate tables. We also offer a free CD calculator you can use to figure out the return on your CD investment.

Author: Lisa Graham
October 18th, 2011

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