Why settle for 2.1 percent, the average yield on a six-month bank certificate of deposit, when Legacy Bank in Hinton, Oklahoma (800-687-9688) pays 2.9 percent? The same bank pays 3.25 percent for one-year CDs. Or, go to Capital One, Falls Church, Virginia (800-564-7426) for a 5.6 percent yield on a five-year CD.
As long as the bank is insured by the Federal Deposit Insurance Corp., you’re covered on accounts up to $100,000. You also can hunt for high-yielding bank money market accounts, where you can get cash at any time.
Be sure any out-of-town institution offers check-writing, ATM access, and wire transfers. A ladder of well-chosen CDs, expiring every six months for five years, can give you high current yields as well as the opportunity to roll to higher-yielding CDs as they mature.