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5 great ways to boost your CD returns

By shopping around for CDs you'll be better positioned to find one with a higher interest rate. Getty Images

If consumers were hoping for a drop in inflation and, with it, a subsequent reduction in interest rates, last week brought some disappointing news. According to a new report, inflation remained unmoved in September, stuck at the ]same 3.7% rate it was at in August. That followed spikes in both August and July. That means interest rates — already at a 22-year high — are likely to remain elevated, and could even rise again before the year is out.

While this isn't great news for borrowers, many of whom are now paying substantially mortgage for mortgages, personal loans and credit cards, it does have a silver lining for savers. And that silver lining is green, thanks to the significant returns they can now get with a certificate of deposit (CD) or high-yield savings account. Rates on both accounts are over 5% currently, with some even approaching as high as 7%.

That said, there are some better ways than others to help boost your CD returns. Start by exploring some top-earning CD accounts here to see how much you could be making.

5 great ways to boost your CD returns

Here are three effective ways savers can boost their CD returns now.

Shop around for banks and lenders

While many banks and lending institutions are currently offering high rates, that doesn't mean you should take the first offer you get. Instead, shop around to see if you can find an even better deal somewhere else. With so much competition with CD accounts currently, it's not difficult to find CDs with high rates and no fees. Some even come without penalties. But you won't be able to find these without doing your research.

Start shopping for top CDs here now.

Consider an online bank

While your local bank branch may offer CD accounts, they may not come with the best rates and terms. In this case, consider using an online bank. Because these institutions don't have the overhead costs that those with physical locations do, they're usually able to pass on those savings to account holders in the form of higher interest rates. 

Implement a ladder strategy

If you're concerned about missing out on future interest rate hikes, then consider using a CD ladder strategy to maximize your returns. This involves opening one CD at a specific term and another at a different one. This will ensure that your CDs expire at different times, letting you earn the higher interest rates of the future while still earning interest at today's elevated rates.

Make a larger deposit

The more you deposit, obviously, the more you'll earn. And while today's rates make even a $500 or $1,000 deposit valuable, the greater returns will come on deposits of $5,000, $10,000 or even more. So if you're comfortable leaving your money untouched for a select term, it generally pays to make a larger deposit. 

Get started right away

The interest rate environment is unpredictable. CD rates were below 1% just a few years ago. And while no one is predicting a drop back to that range anytime soon, it's also possible that rates on these accounts have already peaked. The CD interest rate forecast is unclear, even to many experts. So don't lose your window of opportunity by waiting for a specific rate or time. Get started right away and begin building your bottom line now. Get started here today!

The bottom line

CD accounts currently offer savers a great way to battle inflation, protect their money and grow their funds. But there are effective ways to do the latter, in particular. This includes shopping around to find the best accounts, using an online bank and implementing the CD ladder strategy to take advantage of today's high rates while being positioned to earn even higher rates in the future. It also makes sense to make a larger deposit (if you can), as the more you put into an account, the more you'll get back. Finally, today's rates won't be around forever, so it generally makes sense to get started right away to take advantage of today's high APYs.

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