Q Where can I find the highest interest rate on a CD (certificate of deposit) from a bank in the Twin Cities area?
A Bankrate.com has a search feature that allows you to select your city to find the highest CD rates in your area. The rates are updated weekly.
The Star Tribune also publishes consumer bank rates on Sundays in its Money & Business section. After checking those rates, you might want to call the local bank branches in your hometown to see what they offer. Usually, you need to open an account to qualify for the rate, but banks are always competing to get your deposits, so you may find a better rate in your town.
You can also compare local rates with what you can get nationally. Barron's publishes a weekly "Top Savings Deposit Yields" section that lists the best CD rates as well as money-market rates. Depending on how much you have to deposit, you may want to consider opening an account with one of the online banks. Online banking is a fast-growing industry and sometimes those rates are better.
Make sure you understand whether your money is covered by the Federal Deposit Insurance Corp. (FDIC) and is within the limit to be insured. The FDIC insures deposits of banks and savings-and-loan institutions up to $100,000 per customer and $250,000 for retirement accounts in the event of a bank failure. CDs are covered. Money-market mutual funds usually invest in very short-term corporate bonds or commercial paper and government securities and are not FDIC-insured.
KRISTA J. ZACHMAN, CFP