High yield CD rates are hard to find now and exactly what the word "high" means is different for different people. Interest rates are very low now and so it is a challenge to find the best CD rates. The question is, if you find the best CD interest rates, are they risk free or do you have to assume some risk to get them?

Certificate of deposits are some of the safest investments you can make. This is why it is recommended that seniors have most of their money in CD's or government bonds which have the least risk. Seniors live on a fixed income and most cannot risk losing any of their investment. CD's give them that risk free return although it is of course lower than they could get if they were to put it in a something that did have risk.

No risk equals low returns. That is how it has always been and it always will be. High risk, on the other hand, equals the opportunity to possibly have high returns but nothing is ever guaranteed. Just because you want to invest in no risk CD's does not mean that you can't shop around for the best CD rates. Not all banks give the same rates and sometimes different banks have promotions that will get you and extra quarter or half percent. It can pay to shop around.

CD's are guaranteed by the US government and the amount they are guaranteed up to has just risen from $100,000 to $250,000. If you have more than that you need to put your money in CD's in different banks. Because they are this safe, certificates of deposit will always have some of the lowest yields. You pay for safety with a low yield.

Not only should you look for the best CD interest rates at your local banks but you should also try to find better rates online. With online banking, you have the opportunity to get CD's from banks all over the country. These will all be risk free certificates of deposit up to $250,000 but you might be able to find the best CD rates somewhere online. With this many banks and institutions to choose from, it can get a little confusing.

Now that the economy is so bad, it might be a good idea to check the health of a bank before you buy one of their certificate of deposits. Yes, they will be guaranteed, but it is always preferable to be doing business with a bank that has a solid financial position. You might find the best CD rates at a bank that, upon further research, turns out to be one that could go bankrupt. What you do in this type of situation is up to you but if they go under it will be a hassle for you and you won't get that high yield you were counting on. Perhaps it is wiser to get a CD from a bank that will still be around when it is time for your CD to mature.

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