Well in my search for the best CD rates in my area I found that I nearly missed a place that had better rates for the time limit I was searching for. The Credit Union. While the first locations CD rate at my local bank is for a 36 mo. CD at 2.225% interest, I found that the Credit Union had the same 36 mo. CD for 2.39% interest. That's nearly 17 points difference. Then looking more I found that the Credit Union's 39 mo. CD was 2.43% interest. For three more months I could raise the interest from 39 to 43, yes it's only 4 more points but if you do the math that would be an extra dollar or two!
I use this handy piece of technology whenever I have to figure out several different rates for my money. Certificates of Deposit Calculator best little item to use when wanting to know what your end results will be. For an extra six dollars at the end of my term going the 39 months instead of 36 I'm willing to wait! Needless to say I'm really considering the 39 months.
When doing finances you need to be aware of all institutions around you and be cautious where you place your money. Rates Change rapidly, if you're considering opening a CD check to see when their rates change and then compare when the new rates are posted.
UPDATE
Good thing that I checked my bank again, the 2.225% dropped to 2.20% so I will definately be getting a CD set up at the 2.42% rate. Not only that but I also found that the Credit Union also has a higher Christmas Club account! So they're going to be getting some business from me to gain some extra cash.
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CD DETAIL
Earlier in the making your first 1-5k I mentioned CD's, or Certificates of Deposit. They have thier own set of rates and interest but once your money goes into them you can't get it back out until the times up. Unless you'd like to face a pentaly fee which can be as much as 4 months worth of interest taken away.
I like to think of CD's as money ovens. You put your money (batter) in them for a certain amount of time and when the times up your money's done and you have (cake) more money than what you put in there.
The shortest time you can have a CD is 91Days and you can't touch that money until the times up, but in that time your money gained a special amount of interest that differs from every CD offering location.
Use the Calculator linked in this post to figure out how much you can earn by placing in the interest, the time the CD lasts for and how much you're going to place in. Check with the locations to see how often the intrest is added on typically it would be daily or annually.
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