The best CD rates are those that provide the greatest returns on your investment. CD rates will vary from institution to institution, so it’s important to shop around for the best rate. Typically, longer terms are associated with higher rates of return. While a higher rate may be appealing, you should never go longer than you’re comfortable. For example, if you anticipate needing access to your funds within a year, you should invest in short-term CDs. Depending on the type of institution, such as credit unions or online-only banks, you can often find competitive CD rates.
Another way to maximize CD returns for your savings is to take advantage of “laddering.” Laddering is when you break up a lump sum deposit into smaller investments with varying maturities. For example, if you have
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