With regard to CDs, there are two main factors that affect bank CD rates. The first is the length of time until the CD matures and secondly, the current interest rate environment.

In the first instance, the longer you have your money locked up, the higher your rate will be. If you check around, you will discover that bank CD rates go up as the length of time increases. This is because the longer the period you commit to leaving your money, the more flexibility the bank has with your money. They will be eager to pay you a better rate; because they can use the money for a wider variety of purposes. However, there are also surprising exceptions to this rule in uncertain times.

The bank CD rates can also be affected by the current interest rates. That is because bank CD rates set according to other competitive rates out there. Banks know that you have a variety of options, so you will find that banks try to stay competitive when fixing their rates. You can confirm this by paying attention henceforth. Whenever you see interest rates rising, you will also see bank CD rates rising.

Furthermore, there are other factors that can influence bank CD rates.  For instance, you may find that a bank is trying to win some short-term business by offering slightly higher rates. They are aware that there are people out there shopping bank CD rates, and they hope that once they get a customer in the door the customer will stay and bring on more additional assets.

Another factor is the desired profitability. When you look around, you will discover that credit unions have rates that are slightly higher than bank CD rates. This is because, credit unions are nonprofits, and they can afford to offer a little or more to the customer at the expense of reaping higher margins.

But for you to get the best of bank CD rates, first of all, you must shop around for this. You begin by checking your newspaper, mail, and banners on local institutions. You can also surf the net for this since many CD granting institutions do advertise their products online. Another way is to check any credit union that you have a relationship with. Inquire about their rates and compare with the ones offered by banks. This will avail you of greater deals.

On a serious note, you should use the two main factors aforementioned to your gain. If you really will not be in need of the money for a while, it is better that you go for a longer maturity term. Also, see what interest rates are doing. If you think they are rising, you may make a gain out of it by investing a shorter term because bank CD rates will be more attractive in the future.

In all, buy in quantity. This is because if you wish to get the best rate, you have to meet certain minimums.