CD Rates to Beat the CPI

By: Ryan Harris

We all know the value of saving for a rainy day. In fact, the turn of events in our country’s economy these past few years have only reaffirmed one of the most basic principles of personal financial planning – the need for a savings account and an emergency fund. When we talk of saving, the most common method many of us use is a savings account. We put away a part of our income every month and let it sit in our account so we can easily access it in times of need. But are we really saving money this way?

We may think that by opening a savings account, we are earning money through the interest we get from the bank. However, we fail to factor in one thing that greatly affects the value of our money – inflation. Inflation, or the rise in the prices of goods and services, comes in many forms. The best gauge to use when it comes to our investment returns is the consumer price index. The consumer price index, more commonly referred to as the CPI, measures the change in the prices of a basket of goods and services that we, as consumers, typically purchase.

This means that when it comes to our savings and investments, we need to put our money in financial products that offer higher yields than a simple savings account. This way, we preserve or even grow the purchasing power of our funds. There are many instruments available in the market that can beat the returns of a savings account; several even offer returns above the CPI. However, we need to balance the term or duration of the investment, as well as the risk.

One of the most appealing alternatives available to the public is the certificate of deposit, or CD. Certificates of deposit offer higher interest rates than savings accounts because the money is placed for a fixed term. Also, the longer the amount of time the funds are locked in for, the higher the CD rates quoted. These rates differ per bank so be sure to check around before you open one. You can find high yield certificate of deposit rates online as well.

Aside from certificates of deposit, there are several investment vehicles available in the market that offer good returns, such as equities, mutual funds, ETFs, money market funds, and foreign exchange. What is important is that you get the right information at the right time. There are tools available online at to help you. You can learn more at

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Ryan Harris is interested in the stock market, and he loves to go to to get the latest info on consumer price index. Get the latest info on CD rates, feel free to visit the website.

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