Investing money wisely is a tricky proposition; locating avenues that provide a reasonable rate of return while having an acceptable risk level can be difficult. Identifying and investing in high-rate CDs allows investors to maximize their finances while being relatively assured that their money will be returned. CDs are insured for the amount invested, so they are a safer way to grow finances over time; however, not all CDs are the same. There are differences from bank to bank, and comparison shopping between financial institutions can yield a higher cd rate, depending on the requirements that each has.

The first step is to identify the base rates at all of the banks that offer CDs and that are acceptable for investment. Each bank will have different rates for different lengths of time, and identifying the minimum investment amounts will help to narrow the field. Once acceptable institutions have been gathered, reviewing the specific CDs they have to offer can open up new avenues for investment. Different offerings include fixed-rate CDs, short-term higher rate CDs and variable rate CDs of different types. Many CDs are tied to a fixed rate; these are generally not going to be the highest rates of return, but they should not be discounted since banks may offer higher rates to entice investment. Variable rate CDs can be tied to other rates, such as the stock market or the bond market. These will have a higher rate because there is a bit more risk than in a fixed rate, since the markets can change in unpredictable ways and carry more risk than standard CDs. The bank itself my influence the investment rate simply by the size of the institution. Smaller banks will generally offer higher rates than larger banks in an effort to bring additional funds. The length and the minimum of the CD also impact the rate. Longer investment times and larger amounts will afford a better return than a short, small investment. Banks want to be able to utilize the funds of investors for a longer period of time, and they will pay a higher rate for that ability.

From all of this, the best rate should weighed and identified. Each investor has to decide how long they are willing to put their money into a CD and the amount they have to invest. These decisions have a large impact on the rate of return available from bank to bank. High return CDs can then be pulled from the available options, after weighing all of the options, and the investor can then decide on a high-rate CD that maximizes finances and offers a rate of return that works for them.