2011 Rising-rate CD survey
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Online CDs: the road to higher yield?

Check a bank's rating
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Check a bank's rating

Beware: High-paying CDs may be offered by low-rated banks. Though they are brick-and-mortar institutions, these banks may offer their online CDs to customers around the country over the Internet.

Before plunking down money, look up a bank's rating. Bankrate's rate-search engine is one option. "It lists the highest-yielding CDs nationwide," McBride says. He also suggests checking Bankrate.com's Safe & Sound Rating engine, which uses a star rating to rank a bank's stability. Use it to find local banks that may offer high yields.

"Weak banks put out high-rate CDs because they need capital. The FDIC is breathing down their necks," says Donald Cummings, managing partner at Blue Haven Capital in Geneva, Ill.




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