These days finding the best CD rates usually starts with searching online. This holds true for jumbo CD rates as well as CD rates for smaller deposit amounts. You can get a CD for as little as $500 but if you invest larger amounts you can get higher interest rates. Jumbo CD rates are the highest but they require a minimum deposit of at least $100,000. There are a number of sites that offer comparisons of rates that banks are offering.
If you’re opening a CD for a retirement account you should look into IRA CD rates. Not all banks will offer the same CD rates for their IRAs. Usually IRA CD rates are lower than what you’d get for a normal CD. This is because there are additional administration fees for IRAs.
If you’re not comfortable with online banking you’re left to search through your local banks. Local banks will sometimes offer special offers a few times a year on deposit accounts. They’ll sometimes advertise these rates in local newspapers so you should keep an eye out for these rates when they’re being offered.
The FDIC insured limit for deposit accounts is currently set at $250,000. You should keep all your deposit accounts under this amount. Additionally you should know that all deposit accounts you have at one bank are counted towards this insured amount. In other words you have to keep your checking, savings, and CDs under $250,000 when you add them all together for one particular bank. IRA accounts are considered separate from other accounts in terms of FDIC insurance so you can have $250,000 in regular money and $250,000 in IRA money at one bank. Joint accounts are also considered separate, so there are ways to insure quite a bit of money at the same bank.
You should also be aware that when you invest in CDs, the money is locked into the account for the specified term unless you want to pay an early withdrawal fee.