How to Get a Higher Bank CD Rate
Published June 11th, 2008 in Credit Help and Tips.
Taking a break from credit cards for a minute, I want to talk about general banking strategies that can put more money in your pocket.
A while back I noted that you can lower the APR on your credit cards simply by asking, and low and behold, the same is true for many other things in life.
Specifically, if you walk into a bank and decide to open a new CD (Certificate of Deposit), you’ll typically be offered a certain advertised rate.
Before you decide to jump on that rate, even if it’s higher than all the competitor’s offers you’ve seen, ask for a higher rate.
Tell the banker that you’re interested, but you’d like a better return and see what they come up with.
Personal bankers have a certain range beyond what is publicly offered that they can extend to consumers, although they’ll never tell you that.
And this range can go as high as another 1% above the advertised rate, which can make a big difference if you’ve got a decent sum of money set aside for investment purposes.
Even a short term CD for a period of six months can benefit from this approach, although a longer-term CD will probably result in a better yield.
Remember; never underestimate the power of asking for a concession of some kind, whether it be a discount at a store, a free shipping request, or anything else for that matter.
The worse that can happen is your request may be rejected, but more often than not, you’ll get some kind of deal in the end.
Note: A CD is one of many investment options, and is not necessarily recommended above other alternatives.
(photo: glennharper)
