When looking at a local CD account, it is important to shop around for the best rate. Every bank will boast their “outstanding rates,” yet the only way to know for sure is to find your local banks and taking note of the rates they offer. When you enter the banks in your area, you might find the CD rates posted somewhere. It is usually on a wall, but it is sometimes on a poster or in a pamphlet. If you cannot find any information, ask one of the tellers. Do this for all your local banks, and compare rates for the term you are looking at.
Of course, there are many other factors that go into where you would get your local CD. Some banks offer online banking. Others have better customer service. You might choose the location by its proximity to your house. When you make your final decision, be sure to take all these things into account.
If you have not looked into online CD accounts, you might want to compare their rates to the local CD rates you recorded. Online banks offer the convenience of setup from your own computer, as well as great rates. This is because online banks do not pay the overhead costs of branches. They do not need to pay tellers or rent, therefore they are able to give you higher CD rates. An ING Cd might offer a better package than your local bank.
Be well educated before finalizing your decision. If a CD rate is extremely high compared to the others, it might not be FDIC insurred. This means that the government does not back your money in the case the bank fails.
