Q: Where can I find a high rate for a CD or a money market account?
A: Naturally, the short answer is that you can find the best CD rates and money market accounts on MoneyRates.com. Still, there is more to the story in that, and in fact, there is an important distinction between shopping for the best CD rates and shopping for the best money market rates.
When it comes to CD rates, assume that under virtually all circumstances, longer-term CDs are going to offer higher rates than shorter-term CDs. For example, as of mid-July, five-year rates on average were 1.12 percent higher than one-year rates.
So, your first decision is how long a CD term you want. This depends on your future cash flow needs, as well as your outlook on whether interest rates are likely to rise or fall. If you think interest rates are going to fall, you would want to lock in today's CD rates for as long as possible, whereas if you thought interest rates were due to rise, you would want to stay short so you could roll over into higher rate CDs more quickly.
Turning to money market rates, since money market accounts don't let you lock in a rate, you need to know which banks consistently offer the highest rates. Check out the MoneyRates.com feature on "America's Best Rates" to see which banks were consistently offering the best rates over the past calendar quarter. You can then use this as a short list to see which of those banks is offering the best rate today.
The bottom line is that you can find the best CD rates and the best money market rates on the MoneyRates.com rate tables. In addition, if you read some of the articles on the web site, you should also find some tips that will help you make the best use of that information.
Got a financial question about saving, investing, or banking? MoneyRates.com invites you to submit your questions to the "Ask the Expert" feature. Just go to the MoneyRates.com home page and look for the "Ask the Expert" box on the lower left.