3 surprising ways to maximize CD returns


There are multiple ways to maximize your CD returns right now.

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With inflation high and elevated interest rates designed to combat it making borrowing more costly for millions of Americans, there aren’t many viable ways to both protect and grow your savings at the moment.

There are two savings vehicles, however, that are currently offering elevated returns for account holders: high-yield savings and certificates of deposit (CD) accounts. Interest rates on both account types are the highest they’ve been in years, providing a valuable way for savers to fight back against rising costs.

The more interest you can make on these accounts, then, the better it will be for your wallet. Fortunately, there are some reliable ways that you can maximize your CD returns, some of which may be surprising for even some savvy savers.

Start exploring your CD account options here to see how much more you could be earning now.

3 surprising ways to maximize CD returns

Here are three surprising ways savers can maximize their CD returns now.

Shop around 

You may think that your best resource for opening a CD is your local bank branch. And while that’s certainly possible, there are a wide array of opportunities in the banking deposit world currently. So do your due diligence and shop around for an account. This can mean going to a new bank where you have no money saved currently or it can simply mean doing your research online to find an account. 

Ideally, you’ll be able to find one offering a combination of a high rate and few to no fees. But you won’t know what’s out there until you’ve first shopped around. By doing so, you’ll dramatically improve your chances of securing an account with a high rate.

Start shopping for CDs with top rates here today.

Open an account online

When shopping around for a CD account, you’ll most likely find that the most competitive ones are available online. That’s not a coincidence. 

Unlike their counterparts with physical locations, online banks don’t have the overhead costs of maintaining an in-person branch. Due to that, they tend to have more income that’s passed on to account holders in the form of higher interest rates. So, if the goal is to truly maximize your CD account returns, you’d be hard-pressed to find a better way than opening an account online.

Look at the fine print

While an impressive APR on your CD account is the ultimate goal, it won’t matter much if your account is subject to never-ending fees and penalties. These can quickly eat away at your bottom line and diminish the true returns a high APY can provide. 

Accordingly, while shopping around for an account — whether it be in-person or with an online lender — take a close look at the fine print. Ideally, you can find an account with a high rate and little or no fees. You may even be able to open a CD that won’t penalize you for an early withdrawal (although those tend to come with lower rates than their counterparts that function the more traditional way).

Start shopping for CD accounts here today.

The bottom line

A CD account is one of the few ways you can make today’s high interest rates work for you. But to maximize your returns on these accounts, you should take certain steps, some of which may be surprising for savers who are used to using their local bank branch for all their financial needs. This includes thoroughly shopping for accounts while exploring all of your options with online lenders, too. And be sure to look at the fine print. While a high APY may be great, you may be surprised at how quickly that can erode with excessive fees and penalties. 

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