Finding a Bank with High CD Rate in the Bay Area

Acquiring a certificate of deposit (CD) may be a good investment, especially for those who are financially able to save money. A CD is a financial product, like a time deposit, offered to consumers by credit unions, banks, and thrift institutions. The concept of CD is pretty much the same as savings account so it is risk free. Like a bank savings account, a certificate of deposit is also insured under FDIC. When putting time deposit under CD, financial institutions generally offer or grant higher interest rates. The rates are normally fixed; however, some institutions offer CDs with various forms of variable rates. Finding a credit union institution or a bank that offers high CD rate bay area is not difficult given that there are many of these institutions that exist in the area.

There are various Bay Area banks operating in the region; so finding one with higher CD rate offer is not a problem. However, consumers need to spend time canvassing or looking for the best bank that has the best rates for CDs. Below is some guidelines for interest rates:

-Credit Unions and Banks that are not insured by NCUA or the FDIC or NCUA normally offer higher interest rates.

-A larger principal normally receives a higher interest; however, this is not always true with all banks and credit unions.

-Larger institutions normally offer lower rates than smaller ones.

-A longer term normally receives higher interest rates, except for the case of an inverted yield curve.

-Business CD accounts do not normally receive higher interests rates as personal CD accounts are more preferred.

Like the bay area, finding a bank that offers a high CD rate San Jose is possible. Being the largest city the Bay Area, it sure is a home to many banks, thrift institutions and other financial corporations. Bank Certificates are considered to be one of the best savings investments a person may venture into. So if opening a time deposit is possible, putting it under CD is more beneficial.