1. Online Banks
Online banks often offer higher CD rates compared to traditional brick-and-mortar banks. These banks have lower overhead costs and can pass on the savings to customers in the form of higher interest rates. You can easily compare CD rates from different online banks and choose the one that offers the highest rate. Popular online banks known for their competitive CD rates include Ally Bank, Discover Bank, and Marcus by Goldman Sachs.
2. Credit Unions
Credit unions are non-profit financial institutions that often offer attractive CD rates. As member-owned organizations, credit unions prioritize the best interests of their members. To find credit unions offering high CD rates, you can visit websites like NCUA.gov or use the Credit Union Locator tool. Certain credit unions may have membership requirements, so make sure to check the eligibility criteria before applying.
3. Brokerage Firms
Brokerage firms, such as Fidelity or Charles Schwab, also offer CDs with competitive rates. These firms may provide access to a wide range of CDs from different banks and credit unions. By investing through a brokerage firm, you can gain exposure to various CD options and potentially find higher rates. Keep in mind that brokerage firms may charge fees or commissions for their services, so evaluate the costs before investing.
4. Local Community Banks
Don't overlook the local community banks in your area. Some smaller banks may offer competitive CD rates to attract customers. These banks often prioritize personalized service and may be willing to negotiate rates for their customers. Visit the websites or branches of community banks in your locality to inquire about their CD rates.