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Why choose alternative CDs?

Investing Basics » Why Choose Alternative CDs?

Breaking with CD tradition
Breaking with CD tradition

As interest rates linger near record lows, locking your money away for years in a certificate of deposit may not sound appealing. You may need access to the money or want a chance at higher rates, so many banks have begun promoting nontraditional CDs to encourage investment.

These accounts provide increased convenience and liquidity, but they typically come with a trade-off -- lower yield potential than a traditional CD. Before you begin browsing the banking world for these alternatives, consider these five tips to better understand your options.

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Product Rate Change Last week
1 Year CD 0.90%  0.01 0.89%
2 Year CD 1.03%  0.02 1.01%
5 Year CD 1.59% --0.00 1.59%
 
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