subject: Can Online Banking Help You Get the Best CD Rates? [print this page] Can Online Banking Help You Get the Best CD Rates?
Traditionally, you would have depended on your local bank for CD rates. However, with the advent of new technology and the rise of online banking and comparison sites, you can find great rates on CDs no matter where you live. Because competition between banks is fierce, many CD rates change from day to day. Here's how online banking works:
Multiple Tiered Plans to Help You Save
Unlike other banking products, certificates of deposit aren't subject to the rollercoaster ride of stock market ups and downs. You can even manage them yourself and view your earnings every month from any computer with an internet connection. Bank websites, such as that of Aurora Bank, often provide helpful calculators and rates tables that show you what your potential earnings can look like at the end of the year depending on how much you invest, and your CD's maturity rate. With terms as little as six months or up to five years you can save for anything from a family vacation to a child's college fund and know that your investment is working hard and making money for you.
The Security You Need in a Volatile Market
If your saving style is risk-averse, CDs are one of the best possible ways to save for the future. While your rate of return depends on how long you invest your funds for, you won't be subject to the peaks and valleys of stock market prices. In today's volatile market, CDs can be one of the safest ways to grow your income just by doing something you should already be doing anyway saving! Consider it like a bank loyalty program which rewards you by paying you compounded interest on the money you keep deposited.
The difference is that CDs have the higher interest rates, since you're essentially agreeing to save your money for a set time period, while savings accounts give you lower interest rates, but quicker access to your funds on-demand, should you need them. The more you deposit and the longer you keep it there, the more likely you are to get the best CD rates. You don't need an existing account with a bank, but if you have one, they can make the necessary arrangements to help you get set up.
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