5 Insider Tips to Get the Highest CD Rates

Diversify your investments with a CD — use these strategies to find the highest interest rates.

Investing in a certificate of deposit is one option that can increase your savings to help you reach important financial goals. CD rates are typically higher than traditional savings accounts rates because you have to leave your money in the bank for a designated period of time — or pay a penalty for accessing it.

Whether you’re interested in a six-month CD or a five-year CD, you’ll want the best CD rates you can get. Follow these tips to start earning a high interest rate on the best CD available.

Here are some CD account rates at popular banks including Chase and Citibank:

CD Account Rates
CD Account6-Month CD Rate1-Year CD Rate5-Year CD Rate
ChaseChase Bank CD0.02%0.02% for balances under $100K; 0.05% for balances $100K or more0.80% for balances under $10K; 0.55% for balances $10K to $99,999.99; 0.60% for balances $100K or more
Citi logo 2017Citibank CD0.07%0.15%0.50%
Wells FargoWells Fargo Standard CD0.01%0.05%N/A
Wells FargoWells Fargo Standard CD with Bonus APY0.06%0.10%N/A
Bank of AmericaBank of America Standard Term CD0.03%0.05%0.15%
US Bank logo 2017US Bank CD0.05%0.10%0.75%
TD Bank logo 2017TD Bank TD Choice CD0.20% for balances
under $10,000;
0.25% for balances of $10,000-$49,999.99;
0.25% for balances of $50,000-$99,999.99;
0.30% for balances $100,000 or more
0.30% for balances
under $10,000;
0.35% for balances of $10,000-$49,999.99;
0.40% for balances of $50,000-$99,999.99;
0.50% for balances $100,000 or more
0.45% for balances
under $10,000
0.60% for balances of $10,000-$49,999.99
0.65% for balances of $50,000-$99,999.99
0.80% for balances of $100,000 or more
Rates accurate as of June 4, 2017, except for Chase and TD Bank which is accurate as of April 23, 2018

How to Get the Highest CD Rates

Because not all financial institutions offer the same CD rates, it’s critical to shop around before committing to an account. Here are five tips for getting the highest CD rates available:

1. Look for High CD Rates at Nontraditional Banks

To get the highest interest rates, consider opening your CD at a nontraditional bank, which will often give you a great deal. For example, Chase CD rates are at 0.02% for a six-month term, but the nontraditional Ally Bank will pay you 1.85% for a six-month CD — both of which are FDIC-insured.

2. Negotiate CD Rates

Many banks offer one fixed rate for CDs but some allow you to negotiate a better deal. BNC Bank and Bank First National enable customers to negotiate one interest rate per maturity on CD investments. Chase Bank does not list this as a CD feature, but it never hurts to call and speak with a financial officer if you have a Chase CD that is almost at its maturity.

Related: Here’s How Often CD Rates Change

3. Implement a CD Ladder

If you don’t need immediate access to your funds, you could benefit from building a CD ladder. Building one entails opening multiple, smaller-amount CDs instead of one CD with a large lump sum of money. You set up the smaller CDs to mature at different times — with a different CD maturing after one year, two years and three years, for example.

CD ladders give you periodic access to your funds if needed, as well as the option to reinvest your funds if you so choose. Keep in mind that the longer the term is, the higher your interest rate and APY will be.

Learn More: How CD Laddering Works

4. Use a CD Barbell Strategy

A CD barbell is similar to a CD ladder, except you set up only short- and long-term CDs and skip the medium-term ones. The short-term CDs enable you to earn interest quickly and you roll them over so they continue to earn.

The long-term CDs will have better interest rates, which makes them an essential part of this strategy. For example, U.S. Bank’s one-year CD rates are listed at 0.10%, and its five-year bank CD interest rate is higher at 0.75%.

5. Employ a CD Bullet Strategy

A CD bullet strategy occurs when you purchase CDs at different times but choose the same maturity date for each. If you’re planning for a long-term goal like retirement, this an excellent way to minimize your interest risk.

You can take advantage of credit union CD rates or traditional bank rates to implement this strategy. Just compare the rates and select the institution that will give you the best return.

See: Here Are the Highest CD Rates in Every State

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