How to Find the Best Rate of Return on a CD

If you are looking for absolute safety and a good rate of return, a bank CD can be the perfect solution. As long as the bank you choose is a member of the FDIC, the money you invest in a CD is insured for up to $250,000, so as long as you stay under that limit you can't lose any money. Since all CDs are equally safe, regardless of the bank, it makes sense to shop around for the best possible rate.

• 1

  Read your local newspaper and watch the billboards in the area for bank openings and for new banks moving into your town. Banks often run CD specials to entice new customers to open accounts.

• 2

  Visit the bank where you have your other accounts and ask the teller for a rate sheet. The rate sheet lists all available deposit accounts, along with their current rates of interest. Compare the rates offered on short-term and long-term CDs and determine which duration you prefer. The interest rates on longer-term CDs tend to be higher, but you also have to tie up your money longer.

• 3

  Check the banks in your local and surrounding area and evaluate their CD rates. Compare the rates offered and choose the highest rate CD that meets your needs. Make sure you can meet the minimum balance requirement before you attempt to open the CD.

• 4

  Log on to a rate comparison site like BankRate.com. These sites help savers find the best rates, both locally and nationally. You might be able to get a better rate on the CD you need by working with an Internet bank.