Finding a place to park your savings in a high yield certificate of deposit (CD) can be hard. Many banks may say they have the highest percentage yield, but conditions or stipulations often are attached. There is also no regulation on who can say they have the highest interest rate. Some conditions often include a certain minimum deposit amount and early withdrawal penalties. Ally Bank offers a CD that has no fees and pays interest to a separate account.
Step 1
Use the Internet to search for the best rate on CDs. Go to www.bankrate.com, a website that will allow you to filter out many different banks and find a high-yield CD.
Step 2
Open an account with the best bank and read all of the account disclosures. Many online banks offer higher rates than brick-and-mortar banks. The online banks can do this because of the fact that they have less overhead.
Step 3
Use a CD ladder to get a higher yield if you have more than $5,000 to invest. A CD ladder is a collection of shorter-term CDs that mature at different times and together yield a higher rate than one long CD.
Tips and Warnings
- Try online banks such as ING Direct and Ally Bank to get a good rate.
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