- 1). Visit several banks in your area and ask for a rate sheet. A rate sheet provides a list of the bank's deposit vehicles, including CDs, along with the current interest rate for each.
- 2). Compare the rates offered on each CD. Typically the interest rate increases along with the term of the CD, so you can get a better return if you are willing to keep your money tied up for a longer period of time.
- 3). Calculate how much money you have to invest, and how much you can afford to keep tied up in a CD for several years. If you think you might need the money within a year or two, choose a CD term that falls within that time frame. If you can afford to leave the money invested for several years, look for higher interest rate CDs in one-, two-, three-, four- and five-year terms.
- 4). Choose a CD term based on how quickly you expect to need the money and how much the bank is offering. Shopping around at several different banks and credit unions can help you get the most for your money.
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