Although many people are reluctant about investing in IRA certificate of deposit due to what they deem as mediocre returns, it’s important to realize that there are many ways to increase the IRA CD rates, especially with all the resources and information on the World Wide Web at your fingertips. Comparing rates of interest is an efficient way to obtain the highest possible return on your money. IRA CDs are safe to invest in because they are FDIC-insured investments, therefore they can supplement your present 401k or retirement savings.
How to Compare CD Interest Rates
- Learn about the term of your IRA certificate of deposit investment. Secure an investment term that is more beneficial to you. Do you want to house your funds in shorter or longer term periods? This may run from 6 months CD term, while you can also take advantage of 3 to 5 year term CDs, depending on your needs. Exercise extra diligence, use your discretion, and plan ahead of time to find out if you’ll need access to the money for a purchase in the coming months or years to come.
- Create a list of your preferred local banks. Most towns and communities have a few financial institutions and banks within a practical distance from your home. Get the name of the banks nearest your place and begin making phone calls to ask about their current IRA CD rates. Note that both APY or Annual Percentage Yield data and rates of interest can differ considerably from one bank to another, which is why it’s critical to look around for the most excellent rates on an IRA certificate of deposit within your chosen term. As you collate information, write the interest rates down so you can proficiently compare them later.
- If you have an internet access at home, it’s beneficial to compare CD rates through bank websites. The good news is that most rate information can be seen in a database or central location on several banks’ websites and even tailored to the rates available in your area. You just have to visit a website of a local bank, look for a link with a title like “Savings and CDs”, and click it. The webpage that will pop-up will ask you to provide your zip code so it can give you customized interest rates for the bank’s services or products, to include the IRA CDs. As you browse from one website to another, make sure you print out or at least write down the rates of interest that entice you.
- Another important step to take is to check on internet banks. There are several banks that operate online or even by phone. For the reason that they have lower overhead and operating costs, for the most part, they offer higher interest rates on IRA CDs than what brick-and-mortar institutions can grant you.
There are banks that modify IRA rates for CDs on a daily basis. Thus, if you stumble upon a rate on IRA certificate of deposit that you’d love to lock in, promptly call or visit the bank to open your account on that particular day if possible.