If you have money that you not expect used it for few months or years, consider purchase certificate of deposits (CDs). The obvious attraction of CD is that you get a higher interest rate than on a bank savings account. CD rates are dependent on the maturity of the CD. Each bank has its own policy on procedures concerning maturity of CD. Commonly the longer maturity of the CD you choose, the more interest you should get on it. CD rates also vary from bank to bank. So, it is a good idea to shop around to find bank that offer highest CD rates. Newspapers and internet can be a good source to find the latest CD rates.
Before purchase certificate of deposits, you should remember that penalty is imposed if you choose to withdraw the funds prior to the maturity date. You should check with the bank that’s offering the CD to find out how much this penalty.