This Bank Offered a 7% CD in April. Here Are 5 Tips to Spot the Best Bank Promotions

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Savings accounts and CDs have long been good ways to earn interest on your money, but it’s essential to find the best rates. Learn how to avoid missing out on the best promotions. 

Have you ever missed out on a great bank promotion? It can be frustrating to learn about a deal after it has passed, especially when it’s a high-yield certificate of deposit (CD) with an attractive interest rate. This past April, Priority One Federal Credit Union offered a 7% CD, one of highest in 30 years. While this deal is no longer available, there may be other great CD rates that financial institutions have on offer. Here are five ways you can avoid missing out on the next best bank promotions.

1. Check online-only banks and credit unions

The fintech industry has transformed the financial world by providing more options outside just traditional banks. Online banks and credit unions are becoming more popular, including for offering high interest rates. While some online banks can’t match the convenience of traditional banks, they make up for it with more competitive rates, making them ideal for savers.

Online-only banks don’t have the overhead costs brick-and-mortar banks have, so they typically are able to offer their customers much better rates. Credit unions are not-for-profit organizations and customers are considered members, so they typically offer better rates as well.

2. Sign up for notifications

Once you have narrowed down your list of financial institutions, sign up for their newsletters and get on their mailing lists. Many will advertise their new CD rates, savings accounts, and other banking products. This will help you find the best short-term and long-term rates before it’s too late!

3. Check sites that track them for you

Use sites like The Ascent’s best CD rates page that do the research for you! We compare and aggregate the best CD rates out there, helping you earn more on your savings. Our page is updated frequently, so make sure to check back often so you don’t miss out on the best rates.

4. Take advantage of promotional offers

Banks often offer attractive limited-time promotions to get people to open accounts with them. Make sure to research any promotional offers you see for hidden fees or conditions that may be attached. Be sure to read the fine print to understand the conditions before making the commitment to open a new account.

5. Research before opening an account

Also before opening an account, be sure to conduct thorough research. Consider how much money you want to save and which options can provide the highest interest rates. Remember, CD rates are based on timeframes, typically the longer the CD term, the higher the rate. However, there are early withdrawal penalties for removing your money before the selected timeframe is up. It’s essential to compare banks based on their interest rates, account fees, and minimum deposit to find the right bank for your deposit.

The bottom line is to shop around and compare banks to find the best promotional offers that align with your goals. High-yield savings accounts and CDs can provide stability and decent returns, but keep in mind that promotions don’t last forever. Knowing what you’re signing up for is always essential. Remember to be proactive in researching different options and comparing them regularly to catch the best deals before they expire.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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