Other CD types have compelling benefits, but you’ll likely be locking in a lower rate as a trade-off. Know the trade-off for specialty CD perksĪ high-yield CD is a traditional CD that offers a better interest rate - sometimes as much as 10 times the national average. When narrowing down options, make sure the financial institution is backed by either the Federal Deposit Insurance Corporation or the National Credit Union Association to protect your funds up to $250,000 in case of a bank failure. Since these banks don’t have the same steep overhead costs of managing thousands of physical branch locations across the country, they can usually offer higher rates and lower fees than big banks. Check online-only banks, online credit unions and any local credit unions in your area. If your current bank isn’t willing to match a rate, it’s time to start shopping around and comparing outside options. Look at online-only banks and credit unions Your bank may decline, but it never hurts to ask. For example, if your bank offers 4.90% APY for a one-year CD, but you find a bank that offers 5.25% for the same term, ask your bank if it will consider a higher rate. In some cases, if you shop around, your current bank may match the CD rate another bank offers. Knowing what your current bank offers gives you a baseline to find the most competitive rate.

It may be easier to open an account, transfer funds to open the CD and potentially eliminate fees if you keep all of your funds in one bank, she added.

“The first step is reviewing the rates offered by your current primary bank partner,” said Jennifer White, senior director, Banking and Payments Intelligence at J.D. Ask your current bank to match a competitive rate

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