No matter what the economy is going through right now, banks are going about their day to day business as they always have. They are trying to compete with the CD rates of every other bank in town and across the United States so that they can have your money deposited in their bank. That is what makes the banking world go round. If the banks can’t get your money in the form of Certificate of Deposits (CD) they won’t have the money to offer mortgages and personal loans at a much higher percentage than the CD rates they are currently paying, which means they won’t be making any money.

It’s worth your time to do some research on the current CD rates before depositing your money in one bank or the other. This way you are sure to get the most out of your investment.

If you are uneasy about the stock market and other high-risk investments, a CD will be the solution for you. Currently CD rates are under 5% but they are guaranteed to pay out when they mature. There is no safer bet than a Certificate of Deposit.

With savings accounts paying less than 2%, just under 5% is looking pretty good for someone who is looking to make money with the money they currently have. Just for easy figuring, let’s say that the current CD rates are paying an even 5% APY. In one year’s time every $1000 you have on deposit in a CD will make you $50. In the same year’s time in a savings account paying 2% on the same $1000 will only make you $20. If you have several thousand dollars to put into a CD the difference could really add up at the end of the year.

For those of you who think that a savings account is a safer bet for your money, think again. CDs are federally insured just like that low paying savings account you have been saving your money in all these years. There is no reason why you shouldn’t move that money into a CD right away.

Before depositing your money anywhere, make sure to ask a few questions about how they handle CDs and make sure that you understand the answers you are given before depositing your funds.

Ask the current CD rates for the amount of time you can deposit your money and what the minimum deposit is to be able to get that rate.

Ask if the interest rate is going to change or stay the same until maturity.

Ask about penalties for withdrawing your money before maturity in the event of an emergency.

Find out about rolling it over into a new CD when this one becomes mature and including the interest you have made into the new one.

Also make sure you check your local banks as well as online banks to make sure you are getting the best CD rates available in today‘s market.

As many of you already know, in order to get the best CD rates, you will need to make a minimum deposit of $10,000. Doing this gives you an advantage of 1% in some cases. The lengths of the terms for a minimum $10,000 deposit varies from one institution to another but it’s well worth grouping a few of your smaller CD’s together to get one big one in order for your money to make more in the same amount of time. If you have several smaller CD’s that aren’t making the same CD rates as the $10,000 minimum deposit ones but they don’t add up to a total of $10,000, start putting some extra cash aside so that when your smaller CD’s come due you can add it to what you already have and get a single CD with the better CD rates.

At the end of October, 2008 the best CD rates you can get with a minimum deposit of $10,000 comes from the Corus Bank in Chicago, IL. They are currently paying 4.51% with an APY of 4.60% on a 1 year deposit. The Virtual Bank based in Palm Beach Gardens, FL is currently paying a rate of 4.35% with a 4.60% APY. E-Loan comes in just under that for the same amount and term with a 4.27% CD rate and an APY of 4.36%. Advanta Bank Corp. is currently offering 4.16% and an APY of 4.25%. The Pacific Mercantile Bank is paying CD rates of 4.13% with an APY of 4.22%. Centennial Bank has their CD rates set at 4.10% and an APY of 4.18%. Centennial is based in Fountain Valley, CA.

Dropping down into the 3% range for CD rates is the Palladian PrivateBank at 3.75% with the same APY. Next in the list is the Excel National Bank. They are currently offering CD rates at 3.54% with an APY of 3.60%. And last in the list for a minimum deposit of $10,000 is Countrywide Bank, FSB based in Thousand Oaks, CA. Their CD rates are just under Excel’s at 3.53% with an APY of 3.60%.

All of the above CD rates could quickly change as the economy changes. Remember that they are all based on a 1-year term for a certificate of deposit in the amount of $10,000.

Everyone is different in what they feel comfortable investing in. However we do know that Certificate of Deposits or CD’s are one of the most safe investments you can put your money in. The CD rates aren’t always as important to an investor as are the security and amount of holdings a bank currently has. You may want to stick with a local bank that you can walk into and find out the CD rates for that day, or you may be perfectly fine with investing in an online bank such as E-loan.

If you don’t have enough money to get a $10,000 Certificate of Deposit right now, start with what you do have and keep adding to it. Eventually you will have enough invested to be able to put it all into a $10,000 CD so that you can get the best CD rates possible.