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Most people want to earn as much of their savings as possible. And, certificates of deposit (CDs) are a way to get meaningful returns. But, CDs are not all created equal. Some offer greater returns than others. After all, banks have to compete if they want to make business, and APYs on CDs are one way they do that.
And at some financial institutions, the best APYs are only available on a promotional basis. Some banks even advertise promotions that are higher than average CD rates as a way to attract new customers to their products. And these promotional CD rates can deliver stronger returns for those who take advantage of them.
Normally you need to be a new customer, deposit a significant amount of money, or both, to take advantage of these promotions, but comparing them may be worth it if you’re looking for a new and effective place to store your savings. How can you get a high CD promotion rate? Below we explain the steps to take.
Compare CD returns now at leading financial institutions.
How to Get a High CD Promotion Rate
Open a new CD just because it offers a promotional interest rate may not be a good idea. Instead, it is important to try to achieve the highest possible return. Here are a few tips to help you with that:
Compare your options
Financial institutions are free to offer any promotional returns they wish on their CDs. Promotional rates are a tool that banks often use to compete with each other. So some will be better than others. That’s why it’s important to compare your options.
But don’t just look at the highest promotional rate available. Make sure you compare the promotion that specifically benefits you. For example, financial institutions usually have different promotions for CDs with different terms. So pay attention to the promotions related to the conditions you are interested in.
Earn more for your money today with a top paying CD.
Make a large deposit
In some cases, promotional CD rates are only available if you make a significant deposit to open the account. You may need to open the CD with an opening deposit of $10,000, $25,000 or even higher to take advantage of the promotional rate on some CDs. So be prepared to make a large deposit when you open your account.
Where can you find CD promotional rates now?
Some examples of current promotional CD rates are as follows.
Nexbank promotional online jumbo CDs
Nexbank offers promotional rates on its website jumbo CDs. The promotional rates are based on the term of the account you open. For example, opening a three-month CD might qualify you for a promotional APY of 4.75%, while a 12-month CD might open the door to a 5.40% APY. However, to qualify for this promotion, you must open the account with a deposit of $25,000 or more.
Special CDs from American banks
US Bank offers special CD rates ranging from 3.55% APY for those opening a special 15-month CD to 4.55% APY for those opening a special seven-month CD. The minimum deposit for a US Bank Special CD is $1,000.
Better rates may be available
It’s important to shop around because some financial institutions regularly offer high CD rates. Some may even be higher than the promotional rates of the above financial institutions and others may advertise ‘promotional’ or ‘special’ rates. For example, some of the best CDs for June come with APYs as high as 5.30%. So make sure you compare all your options, not just those marketed as promotions.
Find out now how much you can earn with a CD.
it comes down to
When looking for the CD with the highest return, you may want to consider promotional CD offers. But don’t just open a CD because it has the word ‘bonus’, ‘promotion’ or ‘special’ in the name. Banks are always competing for your business, and there are plenty of CDs that offer attractive returns on a regular basis. And many of them don’t require you to make a significant deposit to get big returns. Compare leading CDs now to get more for your money.
