If you’re looking for a short term savings solution, there’s no shortage of banking products available to meet your needs. Money market accounts, savings accounts and CDs (certificates of deposit) are all common and popular short term investment vehicles. Other products, such as municipal bonds, treasury bills, and I-bonds may be available, but when you’re looking for low-risk savings strategies that still allow you to get a return on your investment, it’s hard to beat CDs.

Getting the Best Rates

Many banks claim to offer competitive rates, but some go beyond the industry standard. The online bank, Aurora Bank (Equal Housing Lender, Member FDIC) offers some of the highest CD rates available. Of course, to get the best rates, you’ll either need to deposit a large amount, or keep the CD for a longer length of time (called the maturity date). Either (or both) of these options can help you get the best possible CD rates. Maturity date lengths and deposit amounts can vary. CD timeframes range from 6 months to 5 years, and deposit amounts vary, but it’s best to keep a minimum balance of $1,000 in order to avoid any extra fees or account maintenance charges. (more…)