Understanding 12-Month CDs
A 12-month CD is a fixed-term deposit account offered by banks and credit unions. It has a maturity period of 12 months from the date of deposit. The deposited amount earns interest at a fixed rate for the 12-month period.
Research Online
Start by researching online to compare the current rates offered by different financial institutions. Visit the websites of banks, credit unions, and online banks to view their CD rate offerings. Make note of the interest rates, minimum deposit requirements, and any special promotions.
Check Local Banks and Credit Unions
Visit local banks and credit unions in your area to inquire about their 12-month CD rates. Some local institutions may offer competitive rates or special deals for local customers. Ask about any promotional offers or loyalty bonuses that may apply to CD accounts.
Consider Online Banks
Online banks often offer higher interest rates on CDs due to lower operating costs. Explore CD options from reputable online banks that provide competitive rates for 12-month terms. Check customer reviews and ratings to ensure the online bank is trustworthy and reliable.
Review Special Promotions
Keep an eye out for special promotions or bonus offers on 12-month CDs. Some financial institutions may run limited-time promotions with higher rates or additional benefits. Review the terms and conditions of the promotion to understand the requirements and benefits.
Consult a Financial Advisor
Consider consulting a financial advisor for guidance on choosing the right 12-month CD. An advisor can provide personalized recommendations based on your financial goals and risk tolerance. Discuss your investment objectives and preferences to receive tailored advice on CD options.