Q:

What are some tips for finding good term deposit rates?

A:

Quick Answer

One tip for finding good term deposit rates is to use a specialized CD rate search engine, according to the Simple Dollar. Bankrate provides one that allows users to input the desired length of the deposit and view the CD rate, its APY, the minimum amount of deposit required and the name of the bank. This information helps the user find the best term deposit rate matching his investment needs.

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Full Answer

Investors should compare CD rates from local credit unions and banks and conduct online searches for the best rates, notes the Simple Dollar. Users may find better deals online due to the reduced overhead costs when compared with brick-and-mortar banks.

Another tip for finding a good deposit rate is for the investor to consider investing for a longer period of time, explains the Simple Dollar. Long-term CDs traditionally have better rates than short-term CDs, but the investor must be comfortable with his money being off-limits for a longer period of time.

An additional CD investment tip is for the investor to consider "bump-up" CDs. These are CDs with which the bank offers investors the opportunity to bump their CDs up to an offer with a better rate if one becomes available. However, such CDs may carry a lower initial rate than a more traditional CD, reports the Simple Dollar.

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