When short term bank savings rates are low, many savers and investors spend very little time trying to find the best bank rates and accept their local bank rates hoping for the market turn. If the interest rate market does turn quickly, the sub par interest rates earned at the most convenient bank will end up costing very little. However, should interest rates remain low for an extended period of time the opportunity cost incurred by holding your funds in low rate bank account can be costly.
It is a common response for savings account holders to pay too little attention to the range of yields available in the market when interest rates have fallen. Just because bank deposit rates have moved lower and may have very little room to fall any further is not an indicator that interest rates are due to rise.
For those consumers that count on interest earnings from bank CDs, savings accounts and money market accounts frustration has grown over the meager yields available. But while bank deposit accounts are in fact quite low, Treasury rates are measurably lower than the best CD rates and best savings account rates.
One of the key lessons during these times is that savers have to be more diligent in their search for the best interest rates on CDs and bank accounts. Even when banks are flush with reserves and rates are low there are always online banks and mid size banks on the lookout for ways to grab a little extra market share.
One solution is maintain a course of dilignce by shopping and compare for the best bank rates available and constinue to allocate funds to bank CD investsments. Some banks offer higher yielding CDs than other banks, but the only way to find the best CD rates is to shop around and compare national CD rates along with regional bank rates.
Don’t always search for the best CD rates with the banks you know. Some of the banks offering the best CD yields may be unfamiliar to you. When reviewing the available offers, consider CDs from online banks, which my be offering higher interest rates than traditional brick and mortar banks because of their lower overhead.
Savers that are hungry for extra earnings on their CDs may think they have missed the boat on higher interest rates may also be pleasantly surprised to learn that there are banks paying interest rates well above the national averages. Good CD interest rates are readily available on 3 month term CDs as well as 6 month term CDs. CD interest rates that are higher than most other short-term, low-risk options available to consumers.
For more information on the best CD rates by term refer to the following pages; 3 month CD rates, 6 month CD rates, 1 year CD rates, 2 year CD rates and 5 year CD rates.
To see a list of the best rates on CDs please refer to Best Rates on CDs.
Additional state specific CD rates can be found at California CD Rates, New York CD rates, Florida CD Rates, Illinois CD Rates, Pennsylvania CD Rates, Ohio CD Rates, Michigan CD Rates, Texas CD Rates.
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