bank-savingsHow do you get the high yield CD rate for your deposits? It’s not too hard to get a great high interest rate CD, although you should be prepared to accept a few constraints to truly get the highest interest rate CD.

First, just watch the advertisements. Whether you look in the paper, on the tv, or online, you can easily find some high yield CD rate offers. Online offers for high yield CD rates may come from a bank that has no physical bank branches, such as ING Direct.

Second, be ready for a new bank or credit union. The offer may not come from your bank or credit union. If you want to get the highest yield CD rate, you may have to open an account with a new bank or credit union. It certainly can’t hurt to ask your own bank or credit union to match the high interest rate CD offered in the advertisements. If you already have a strong relationship with your bank or credit union, they will most likely be willing to bump up your CD rate or offer you a new high interest rate CD to keep your deposits with them.

Third, understand the fees. Getting a high yield CD rate is great, however, there will almost definitely be some withdrawal restrictions. Sometimes, the higher the CD interest rate also means the higher the early CD withdrawal penalty. If you are sure you are not going to need to withdrawal your money early from your high yield interest rate CD, then this won’t be a problem for you. There are some CDs our there that may not offer the highest yield CD rate, but they have few restrictions about withdrawing your money early.

To get the highest yield CD rates, your need to keep your eyes open for certain situations. Just watch for the following opportunities:

An economic recession. During a recession, people tend to pull their money out of banks for various reasons, such as fear of a bank collapse and just needing the money to survive. In this economic situation, many banks will offer high yield CD rates to tempt you to set up your next high interest rate CD with them. Is it risky to put your money into a high yield CD during a recession? Not if you following limits for FDIC and NCUA insured funds. In general, you can deposit up to $250,000 in a high yield rate CD and still be insured by the FDIC or NCUA. You can deposit even more and still be insured if structure your deposits with custodial accounts. Just be careful about non-deposit investment products, which are not insured by the FDIC or NCUA. High interest rate CDs are actually a good place to put your money in a recession, since you are insured and you can still earn a great interest rate on your CD during tough economic times.

A new bank in town. Many times when a new bank enters the area, usually through a bank takeover or acquisition, they will offer a high yield CD rate to buy new customers. They hope to eventually become your primary financial institution. To start with, they want to get you in the door with a very attractive high interest rate CD.

A bank is getting ready for a buyout. What better way to position your bank for a good price in a buyout than to build your assets as quickly as possible. How do you do that? Offer great high yield CD rates. The bank gets what they need and you get an incredible high interest rate CD.

Really, the easiest way to get a high yield interest rate CD is just to watch the advertisements. CD rates obviously fluctuate with the economy, but if you keep an eye out, you shouldn’t really have a problem, especially if you are flexible about where you get your high interest rate CD.