Keep in mind that the health of the economy in general dictates what the level of competitive interest rates will be, and that in turn influences what the best CD rates will be.  In a volatile or fluctuating economic environment, a certificate of deposit investor needs to decide whether or not they should lock their money up for a long-term and receive a higher interest rate, or whether they should wait and see if rates will be more favorable in the near future and keep the CD term shorter.  Keep an eye on the rates offered for different terms on bank CDs.  You’ll see that the best CD rates have the longest maturities, although there are always some surprising exceptions and the spreads between long term CD rates and short term rates may not be worth the risk of tieing up your money for a longer period of time.

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