2011 High-Yield Checking Survey
High-yield checking
savings
5 low-risk ways to earn higher interest

Check out low-penalty CDs
Next
5 of 7
Back
Check out low-penalty CDs

Low-penalty certificates of deposit are nearly liquid money. But they also pay higher rates.

"In the past few years, some banks began offering CDs with no lockup time," says Carol Kaplan, spokeswoman for the American Bankers Association.

The pluses are significant. They include taking money at any time without a large penalty, earning higher interest than a savings account and having FDIC insurance.

For example, Ally Bank offers no-penalty, 11-month CDs paying 1.15 percent APY with no withdrawal penalties as of mid-March. There's also no minimum investment.

"These CDs are almost liquid," Tumin says. "Then, you also get the benefit of a rate lock."


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

Best investment for grandkids?

Dear Dr. Don, I am a grandmother of four and want to start a life savings for my grandchildren. Their ages range from 2 to 8. Should I get savings bonds or certificates of deposit? Thank you, -- Nanna Notes Dear Dr. Don,... Read more

advertisement
Partner Center
advertisement

Connect with us