High Interest CD Rates - Seven Secrets to Discover Them

So that title just pulls in you doesn't. Especially with high CD interest rates hovering in the 1% to 2.5% range. There is a little poll below where you can tell us what your local bank is paying, but I bet most people aren't getting much. Since I make my living in the finance and banking world, I do have some good ideas on how to search on ways to get a better rate.

Secret #1

Let others do the searching for you, while you go golfing. Now, I'm not talking about going to down to your local Charles Schwab or Edward Jones either. They may be good at other investment vehicles, but CDs aren't their forte. Mostly, because they can't make much money with them. They only have access to brokered CDs and these days those yields are around 0.35% for a 1-year CD. Believe me you can do better. Try searching for Jumbo CD Rates using Google. I think you'll find a little gem there and maybe a 2-year CD at 2.50%.

Secret #2

Well maybe you like to be in more control. Maybe you don't even like golf and would rather scour the interent for the best online CD Rates you can find. So Tip #2 is, go searching. Use your favorite search engine like Bing, Yahoo, or Google. Try a few phrases like: "CD Rates", "Best CD Rates", "IRA CD Rates", "Best 1-year CD Rates", "MA CD Rates", etc. You will usually find other sites like Bankrate.com, Bromoney.com, Bankfox.com, Best Bank CD Rates, etc. Many of the Certificates of Deposit being offered are from affiliate offers. The site gets paid if you open a CD with their link. And there is nothing wrong with that. However, often the banks with the top rate aren't paying anybody to bring them deposits. So you'll need to dig deep to find the best deals. But, if you can find a 1.75% for 1-year and your local bank is only paying 0.50%, the extra time will probably be worth it, especially if you are opening up Jumbo CDs.

Secret #3

Just ask. That's right. It is very simple. Walk into your local bank. Plop your cash on the counter (well maybe not) and say I want a high CD rate. They will first probably give you around a 0.50%. But, ask to speak to a supervisor or branch manger. Let them know you have a good amount of cash and a good amount of friends. You want to help put both to work for the bank. If they balk at offering a higher rate then pull out some of the deals you found in Secret #1 and Secret #2. Just like when you are buying a car, don't be afraid to walkaway if you aren't getting a good deal. Their mind may change as they see "their" cash walking out the door. If they don't holler for you to come back, don't sweat it. You've already got your back-up CD interest deals from above.

Secret #4

Go to the FDIC website and search for other banks in your state. Most banks have a website. Look up their contact details and then follow Secret #3. Except, you may not be physically visiting them depending on how close they are. After making a few calls and/or visits you may just find a top CD Rate or a bank that is willing to deal.

Secret #5

Using the FDIC website again, search for banks that are exhibint some weakness. This can be large losses tied with a low Equity/Asset Ratio. This could also be a bank that has had to set aside large amounts of cash for potential loan losses. Weaker banks are often having to offer higher CD rates. Since your principal is insured up to $250,000, you won't lose anything except for maybe sometime if the bank doesn't last that long. You can also use a bank rating site like Bauer and look for 1-star and 2-star rated banks. The 4-star and 5-star probably won't have good rates.

Secret #6

Look for high 5-year CD rates with low early withdrawal penalties. If you can find a 2.50% or greater and the penalty is 180-days or less, you can enjoy a good rate and once rates start rising again, you can move the funds and it won't cost you too much to do so. In addition, if rates stay low for an evey longer period of time, your getting a higher rate than the shorter-term CDs are paying.

Secret #7

Just skip the bank. Often times Credit Unions will have higher rates than banks. Credit Unions aren't trying to return a profit to a small set of stockholders. Every member is an owner and they want to give you the highest CD rates and lowest loan rates possible. Plus, many credit unions often pay a dividen at the end of the year and you earn even more. Credit unions are federally insured just like banks, so you can't lose principal as long as you stay under the $250,000 limit.

Chase Bank CD Rate