Where to compare CD Rates at Financial Institutions

The economic crisis has affected financial institutions so severely, that the competitive landscape has changed the banking industry forever. Banks compete fiercely for depositors and therefore interest rates fluctuate constantly for CD’s. In light of this, it is important to compare CD rates at different financial institutions.

Online resources

Perhaps the easiest and most efficient way to compare CD rates is using an online resource like Money-rates.com. This website updates competitive banking rates on CD’s, savings accounts, checking accounts and money market accounts on a daily basis. There are three drop down menus that ask for the type of account, the term of the deposit and the amount to be deposited. The result will be a list the of the most competitive CD rates from across the country. Although access is free, be aware that the first few listings are paid advertisements from different banks and may not represent the most competitive rates.

It will also prove to be beneficial to cross reference the results from money-rates.com with another online resource such as Bankrate.com. Their website functions similarly to Money-rate.com, but gives the user the ability to compare CD rates and financial institutions locally as well as nationally.

Using a CD placement service

A CD placement service is a private brokerage firm not owned or affiliated with a financial institution. These companies have the ability to search the country for the best CD rates for their customers and have the most timely rate information. They also offer expertise in comparing the quality of different CD offerings, laddering of CD investments, and can provide advice on the safety and financial condition of individual banks. Their fees are generally .15% of the deposit and are charged on an annual basis.

Brokerages also offer CD’s

The major brokerages such as E*Trade, Scottrade and Charles Schwab all have brokered CD’s from a variety of financial institutions. Unlike traditional bank CD’s, these instruments are more like bonds in that they are tradable and many are callable as well. They have the advantage of typically offering a higher interest rate than traditional CD’s, with longer terms sometimes upwards of 20 years. They are FDIC insured and unlike traditional bank CD’s, brokered CD’s carry no penalty if sold through the secondary market. However, since they are trade able, they can drop in value before maturity, and there may not be a buyer when the holder wants to sell the CD.

It is easy to compare CD’s at different financial institutions

There are a variety of ways to find the best interest rates when purchasing a CD. Online resources make the search easy and will usually result in yields far superior to either the national or local banks.

Related posts

1. How Do I Find The Highest Cd Rates?
2. How to Compare CD Rates?
3. Which Banks Typically Have The Highest Cd Rates?
4. What To Be Aware Of With CD Rates
5. How do I Purchase a Certificate of Deposit?

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