What To Look For In a CD Rate

Searching for CD RatesOften, I will hear people ask me what you should look for when you’re planning on investing into a new CD rate.  Since many of the older generations are iffy on the Internet based banks, I don’t blame them for being worried about tying their money in with a technology they aren’t familiar with.

Check for FDIC insurance - If the bank you’re looking at isn’t FDIC insured, I wouldn’t even bother with it.  All the banks that I post here are FDIC insured.  If you want to be assured that the bank is indeed insured, head over to FDIC.gov to look for that bank’s certificate number.

Research reviews - Another great way to get a feel for the bank is by simply checking online reviews.  Sure, people do love to be negative online but you usually can get a pretty good vibe if that bank is legit or not.  You’ll want to research everything from customer service to the bank’s stability.

Check the safe and sound rating - A great way to check on how a bank is doing is by checking the safe and sound rating which can be found at Bankrate.com.  The safe and sound rating will be able to give you a better understanding on how stable the bank is.  Based on a five star system, research your bank and see what kind of rating it gets.  The higher the rating, the better the bank will be.

A great rate - This is obvious but make sure that when you’re about to open up a CD that you’re getting a great rate.  A great place to start looking is by checking out the top 10 CD rate charts.  You don’t necessarily have to grab the #1 rate but I would most likely recommend it unless you don’t have enough for the initial deposit.

By now, you should know what to look for in a CD rate.  If you feel unsafe with online banking, that’s okay because there are many like that out there.  It’s like anything though, you’ll want to test it out for yourself to see how it works.  You’ll be pleasantly surprised on how great it is.  Even if you dabble with $500, you’ll soon find out that online banking is the best route to go.

Disclaimer:This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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