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Why choose alternative CDs?

Investing Basics » Why choose alternative CDs?

Breaking with CD tradition
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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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CDs Overnight Averages
Product Yield +/- Last week
6 month CD
0.41% 0.43%
1 yr CD
0.62% 0.63%
5 yr CD
1.22% 1.24%
1 yr jumbo CD
0.65% 0.65%
Compare rates:
Don Taylorinvesting
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