There you are at the local bank ready to purchase a certificate of deposit and start earning interest on your hard-earned savings. But wait a second, how much money are you actually going to earn on that CD? Are there better rates out there?
The answer to the former question is an easy one at today's rates -- not a whole lot. Use Bankrate's CD rate calculator to get a more specific answer. This table should give you some idea of whether or not you're getting a good deal based on the average rates in the weekly CD rates survey conducted by Bankrate.com.
Average yield on $1,000 deposit
|Term||Initial deposit||Average yield||Final total|
These are just the average rates though. There are better CD rates out there.
Here's how to find better CD rates
Similar to finding deals in other venues, CD buyers benefit from shopping around.
- Check online banks.
- Ask about CD specials.
- Consider high-yield saving accounts for liquid savings.
- If everything else is equal, go for daily compounding as opposed to less frequent compounding. That will squeeze every last penny out of your CD investment.
The yields in Bankrate's CD rate tables are as high as 1.1 percent as of June 18.
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Senior investing reporter Sheyna Steiner is a co-author of "Future Millionaires' Guidebook," an e-book written by Bankrate editors and reporters. It's available at all the major e-book retailers.