Year End Specials

• At the end of each year, start keeping an eye out for CD ads from your local banks. Many people think about contributing to an IRA at the beginning of tax season, since contributing to a deductible IRA can reduce tax liability or boost the size of a refund. As a result, banks often compete briskly for IRA money. Watch the business section of your local newspaper, and watch the signs at local banks as you drive around. Call around to banks in your area and ask about any IRA CD specials they are running for the upcoming tax season.
  
  

Grand Opening Specials

• When a new bank moves into your local area, that bank is anxious to make a name for itself and gain new depositors. To get those new customers, banks often run CD specials available to new customers only. These CD specials can be quite lucrative depending on the bank, often as much as a point above other competing rates for the same length CD. Watch for new bank construction in your area, and watch for new bank grand openings in your local paper and on the radio and TV. Attend those grand openings and ask about any IRA or CD specials they offer. You might have a limited amount of time to sign up, so it is a good idea to bring your checkbook with you to the grand opening.
  
  

Online Banks

• Banks that operate online only often have lower cost structures than banks that must maintain a network of local branches. As a result, those Internet banks are often able to offer higher rates on both personal and IRA CD accounts. You can search online for CD specials at online banks, and many online banks advertise in national financial publications such as Barrons and newspapers like the The Wall Street Journal. Be sure to read the fine print carefully to determine how much you have to invest and how long the term of the CD is. If you are sure you want to maintain the CD for an extended period of time you can generally get a higher rate of return by purchasing a longer term CD.
  
  

Check With Your Broker

• If you have a personal or IRA account with a stock broker, your broker might be able to help you find a high CD rate for the money you do not want to put at risk. Many brokerage firms now have affiliated banks, and those banks can provide excellent CD rates for clients. In addition, brokers often have access to a nationwide network of banks, and they can shop around for the best rates to help you get the highest return on your money.
  
  

Try a troubled bank

• Banks that are struggling must pay extra to borrow money through the Federal Funds Rate. Paying higher rates on depositors' CDs is still less costly than paying the added premium on the Federal Funds Rate. Also, without sufficient money from depositors, a struggling bank can't meet loan demands and could fall short of federally required deposit levels.