Are CD Rates Negotiable?

If you’re thinking about putting your money into investments that are safer and sounder than the stock market or the real estate market, then you may want to consider certificates of deposits, or CDs as they’re called for short. If you put your money into CDs, you want to find the best interest rate possible. After all, the higher the interest rate, the more money you’ll make on your investment – and that’s what investing is all about, right? Many people will simply select the CD that best fit their situation – so they will consider the amount of money they have and how long they want to invest that money, then take the rate that the bank offers. But did you know that you can negotiate with your bank or whatever the lending institution may be that you’re buying it from?

The economy is really hurting these days and the epicenter of it all seems to be the banking sector; day after day there is more bad news about huge banks collapsing, and there doesn’t seem to be any end in sight. So, banks need your money – and they’re trying to attract people to invest in their financial products, like CDs. They do this by offering great rates. But the good news is, once you signal that you’re interested in a CD, you can also seek to negotiate the interest rate. Why not? After all, it’s clearly a buyer’s market these days in many ways, and that applies to CDs as well.

Before you try to negotiate a better, higher, rate for your CD, be sure to consult with a financial advisor. He or she could give you invaluable tips on how to negotiate the right deal for your CD. After all, when it comes to your money you don’t want to take any chances – but there’s no harm done by trying to negotiate a higher CD rate.