Interest rates can help account holders boost money held in savings for a long period of time. Finding the best interest rate comes down to how long the money can stay in an account untouched. Savers who can refrain from withdrawals for at least six months should consider a certificate of deposit. CDs tend to have higher interest rates than both savings and money market accounts, but check before saving, because rates can change.
Choose a CD Term
CD selection depends on how long the saver can survive without access to the money. Durations start at six months and go as long as five years. Longer terms will have higher interest rates. Leave the money until term's end to receive the full amount of interest and avoid early withdrawal penalties. Savers planning to set aside a small chunk of money in one account should check local bank rates for the longest-term CD manageable. If you prefer to compare rates online, use a wide-reaching interest rate comparison search.
Consider Rolling CD Acconts
Rolling CD accounts might entice savers with enough money to distribute between three accounts but doubts as to when some money will need to be withdrawn. Set aside one-third of the savings into one each of a one-year, two-year and three-year CD account. Move the one-year savings into a three-year account once the term expires, then do the same when the two-year expires. If you're confident that the money isn't needed for at least two years, try staggering between a two-year, three-year and five-year account.