Check a bank's rating3 of 7Beware: 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.« Back to Rising-rate CDs. Related Articles:Brokered CDs a mixed bagCD penalties are costlyDo risky CDs pay off?High-yield CDs best betRelated Links:CDs and deflationNo-penalty CDsCD laddering strategiesCompounding and CD value advertisement
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.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
A little research could save you BIG on interest.