Highest West Virginia CD (Certificate of Deposit) Rates

West Virginia residents can find good West Virginia CD (Certificate of Deposit) Rates by browsing online or checking the local banks. But before doing anything, you should at least know a little about certificates of deposit.

Certificates of deposit or CDs are type of investments issued by banks, credit unions and sometimes brokers that has a maturity. This means that you should not withdraw your funds before the maturity date, otherwise you'll be charged with an early withdrawal penalty which will be deducted from the interest earnings of your CD account.

The following are some of the basic points that residents of West Virginia should know first before availing of certificate of deposit accounts.

One, compare rates. Shopping for West Virginia CD Rates can start with comparing the rates. First time CD investors may be seeing some terms and acronyms such as APY. APY stands for 'annual percentage yield'. It is the rate representing the future earnings that you can earn on your deposit. This is always revealed in online banks and may subject to change so be sure to call your banks for rate updates. APR, on the other hand, which means 'annual percentage rate' is the nominal interest rate offered by the bank on the CD. Obviously, the higher the rate, the higher the yields. With that it is advisable to search for CDs that has high APYs. The City National Bank of West Virginia presently offers a 2.70% APY on their 5 Year term CD which is higher than Huntington National Bank's 1.71%. There may other higher APYs around the state so be sure to check the banks near you.

You should also know the penalties charged for early withdrawals. In WesBanco, the penalty for an early withdrawal of a 7 Month to 11 Month CD is equivalent to a 6 month's interest earned. That is a little harsh considering that you will be losing a lot of your interest earnings. So it's wise to invest in shorter term CDs in case you would have to withdraw for dire needs.

Finally, you should determine when you will need the funds. Through this, you will know which term certificate of deposit is right for you. For example, if you are going to buy a car within a year, it's better to invest on a short term CD account. But if you are willing to avail of a 5 Year CD account, you must at least be sure that you won't need those funds during the term. There are some banks who offer very flexible terms that can take 30 days to more than 9 years. Within the time frame of the certificate of deposit you avail, be sure that you'll be watching the movement of the APRs and APYs of other viable CDs.