How Do You Compare Bank CD Rates?


Quick Answer

To compare bank certificate of deposit rates, select a time period and then visit Bankrate to see a list of rates, as stated on the official Bankrate website. Certificate of deposit rates change periodically due to fluctuations in interest rates, notes About Money.

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Full Answer

The official Bankrate website contains information related to rate period, financial institution, annual percentage yield and minimum deposit. Once the desired rate period is selected, a list is populated that contains information related to various rates offered by financial institutions. Customers can also visit the official website of a particular financial institution to find out more about the specific rate terms. For instance, the Chase website contains information about insurance protection, rate of return and monthly service fees.

Two factors impact the current certificate of deposit rates. Length of time until maturity is positively correlated with certificate of deposit rates, notes About Money. An investor willing to place money in a certificate of deposit for a longer period of time receives a higher interest rate. Certificate of deposit rates also relate to the benchmark interest rate, which is known as the London Interbank Offering Rate, explains Bankrate. As the London Interbank Offering Rate increases, the certificate of deposit rate increases accordingly.

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