Best Student Credit Cards of 2019

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the bank’s website for the most current information.

Author: Bankrate Staff

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What you need to know about student credit cards

It’s easy to dismiss student credit cards as having limited benefits, because they are reserved for people who are new to credit. In reality, they’re just as valuable as general rewards cards – but with some functionality specifically tailored to students’ credit-building interests. Here’s a deeper dive into our top picks for 2019 and insight on how you should be approaching credit as a student.

Table of contents:

How we chose the best student cards

There are a bunch of factors that power our proprietary Bankrate Score, but some credit card features are weighted more than others. The best student cards make it easy to build credit: They have no annual fee or penalty APR. Here’s a list of the top factors we used to evaluate and score student cards, in order of importance:

• APR rates: Variable APR and penalty APR (the interest you pay if you miss a payment) can be high and compound quickly.
• 0% Intro APR offer term length: A long period at 0% APR means that you can charge a large expense (such as a new laptop) to your credit card and pay it off over time without incurring interest.
• Intro bonus and card perks: Great student cards should offer useful perks, like cash back on certain categories like gas and groceries.

Recap of our top picks for the best student cards for 2019 spring semester

Card Name Best for Discover it® Student chrome Gas, dining & large purchases Journey® Student Rewards from Capital One® Flat-rate cash back and studying abroad Discover it® Student Cash Back Rotating cash back bonus categories Citi Rewards+℠ Student Card For everyday spending Deserve® Edu Mastercard for Students Best for Amazon Prime membership Self Lender — Credit Builder Account Best for credit building

Deeper details on each of the best student credit cards

Discover it® Student Cash Back

This student card can produce an extremely lucrative first year of cash back for savvy spenders. Earn 5% cash back in rotating categories each quarter, such as gas stations, grocery stores and restaurants, up to the quarterly maximum each time you activate. Earn 1% unlimited cash back on all other purchases. Any student can benefit, since there’s no annual fee and a $20 reward for each year you maintain a 3.0 GPA up to the next 5 years. But those who don’t mind putting in a little strategy can really earn big. Maxing out the quarterly bonuses before the rewards rate drops from 5% to 1% will result in $75 in rewards each quarter.

Why recommend this card to other students?

This card is essentially the same as the Discover it® Cash Back. But students don’t have to worry about having a credit history to be approved. And Cashback Match, where Discover will automatically match all of your cash back earnings from your first year, is a great bonus.

Journey® Student Rewards from Capital One®

The Journey card has no annual fee and offers 1% cash back on all purchases, but you can boost that to 1.25% if you pay your bill off on time. That’s a pretty sweet deal for those who spend on school supplies and gas, while also being fairly new to building credit. On top of that, enjoy Eno®, your Capital One® assistant, to manage your account via text, receive alerts, and shop safer online.

Why recommend this card to other students?

Paying no foreign transaction fees on this card really sets it apart for student value. Take it abroad, pay your bill in full every month—your credit limit may even increase after 5 months of on time payments.

Discover it® Student chrome

Discover’s chrome card for students earns 2% cash back on up to $1,000 in purchases at gas stations and restaurants per quarter. For everything else, you’ll earn 1%. Although that may not seem like a huge rewards rate, keep in mind that if you’re a student looking to build credit, the roughly $20 in rewards you earn every quarter will be a pleasant surprise you can count on for as long as you’re using the card (and reaching the spend cap of $1,000 per quarter).

Why recommend this card to other students?

Similar to the Discover it Student Cash Back, this card is essentially identical to the Discover it® chrome, only you receive a good grades reward that stretches over 5 years. And your cash back earnings will automatically be matched at the end of your first year with the card.

Citi Rewards+℠ Student Card

With the Citi Rewards+ Student Card, you’ll receive 2 ThankYou® Points per dollar at supermarkets and gas stations (for the first $6,000 spent each year, then 1 point) and 1 ThankYou® Point per dollar on everything else. Enjoy paying zero percent APR for 7 months on new purchases (then 16.74% – 26.74% variable).

Why recommend this card to other students?

While this card does call for good/excellent credit, you get a 10-point round up on every purchase you make (meaning your $2 coffee can earn you 10 points rather than 1). One of the coolest perks of the card is its 10% Points Back feature – you’ll get 10% of your ThankYou® Points back on the first 100,000 points redeemed each year.

Other notable options for students looking to build credit:

Deserve® Edu Mastercard for Students

Students earn an unlimited 1% cash back on every purchase made with this card. Although that’s a modest rewards rate, it’s a nice benefit in the context of every other perk this card offers. Cardholders are eligible for up to $49 (lifetime total) for Amazon Prime Student, as well as ID theft protection, price protection, and other Mastercard Platinum benefits. It’s also another card without foreign transaction fees, so take it abroad with you.

Self Lender — Credit Builder Account

Self Lender’s Credit Builder Account is a unique offering in the student credit category. It doesn’t offer cash back or perks on category purchases, but instead offers help in securing a small loan to deposit in a Certificate of Deposit (CD) bank account. For college students in their second or third year especially, this is a huge asset when it comes to unlocking a nice fund upon graduation. Your loan will sit in the CD account for 12 or 24 months, and after that, you will be able to withdraw more than you initially put in.

What are student credit cards and how do they work?

It’s common for young people, especially college students with mounting loan debt, to be apprehensive about applying for credit cards. In fact, 47% of college students age 18-24 don’t have a credit card simply because they want to avoid debt as much as possible, according to research from Sallie Mae and Ipsos. With a better understanding of credit and how a student credit card can benefit you in the long run, you’ll see that if you are a good candidate, applying for a student credit card is a wise first step in long-term financial wellness.

Student credit cards provide you with a line of credit, usually $1,000 or less. When you use the card, money isn’t directly drawn from your bank account. Instead, the issuer (Capital One, Discover, etc.) pays for the expense and records the amount you charged. The total amount you owe to the issuer is called a balance.

If you pay off the balance in full and on time every month, you’ll never owe more than what you spent. Though, credit card issuers allow you to make small “minimum payments” and carry the rest of the balance month-to-month. When you carry a balance, you’ll have to pay interest on the total amount. Your interest rate is also known as the Annual Percentage Rate or APR. APRs vary across all credit cards, but with a student card, you can expect your rate to be 14-25%.

Why get a student credit card?

Some people start out using their parent’s cards as an authorized user, in order to ease into the credit world and kickstart a credit history. However, that’s not an option for everyone. Getting your own student credit card allows you to take a step toward financial independence. The best part is you don’t have to be a big spender. You can start by paying your rent or internet bill – or even buy next semester’s books.

Here are some good use-cases for your student card:

Build good habits

Using your credit card to buy a meal or your morning coffee throughout the week will get you in the habit of using your credit card regularly, paying your bill on time and accruing rewards.

Grab perks for making larger purchases

Charging larger expenses to your credit card, such as flights for a spring break vacation, can be a great way to earn travel rewards and benefit from some of the perks (such as rental car collision insurance and lost luggage insurance). These benefits are great, so long as you have the income to pay your bill. Incurring interest will vastly negate the travel rewards or cash back you would earn by using your card.

Cushion for emergencies

A credit card can be a great resource in your wallet in the case of emergencies. It’s good to establish clear boundaries for what constitutes an emergency and what doesn’t. (No, the late night pizza craving isn’t an emergency.) If your car breaks down, you need a hotel room after your flight gets canceled or you need to pay a medical bill after a trip to the ER – your student card can be a much needed cushion. Just make sure to pay your bill before you begin incurring interest.

Credit card terms students should know

• Annual Percentage Rate (APR): Interest rate paid on balances carried from one billing period (month) to the next.
• Penalty APR: The highest APR that will be applied to your account. Penalty APR is usually applied after you miss consecutive payments. To return to your original APR, you’ll need to make 6 consecutive on-time payments.
• Credit Utilization Ratio: This ratio is a measurement of how much of your available credit you are using. If you have a $5,000 credit limit and usually stick to a $500 per month budget, your ratio is at 10%. The lower your ratio is, the better. If you use up a large chunk (or all) of your available credit every month, your credit score may decrease.
• Annual fees: Some credit cards have annual fees of $50 or more, though most student cards do not. Be sure to check for fees before applying for any card.
• Credit bureau: Research entities that compile all of your credit history reporting to generate your credit score. In the US, there are 3 major bureaus—Equifax, Experian, and TransUnion.
• FICO: The entity that creates the scoring model used to create credit scores. FICO credit scores range from 300 to 850, with 850 being the best. Credit scores are one factor in determining your creditworthiness.

How students can avoid getting into credit card debt

If you’re spending time gathering information on credit cards for college students, you’re already using the first good strategy for avoiding credit card debt:

• • 1. Do your research. Credit cards have a lot of terms and conditions. It’s wise to understand exactly what kind of card you need and find a card that best meets those needs. If you don’t own a car and you rarely dine out, it’s probably not in your best interest to apply for a rewards card that offers cash back on gas and dining purchases.
    2. Pay off your balance in full every month. It may seem obvious, but the only way to avoid paying more than you have to is by paying in full every month. Some credit cards will let you choose your own due date, others will establish one for you. Make sure you note when your credit card bill is due and stick to your payment schedule.
    3. Exercise caution when paying tuition with your credit card. It’s best to not use your credit card to pay for tuition, but some schools will allow you to do so. However, be aware that you’ll be charged a convenience fee of about 3% that’s added to your bill. You risk getting into credit card debt when these extra charges affect your everyday spending and eventually dismantle your budget.
    4. Look for introductory offers. If you absolutely need to make a larger purchase, and you carry a balance, look for a student card with a 0% introductory APR. Some cards have zero percent APR for the first several months. During that time, you can make one large purchase and gradually pay it off without any interest.
    5. Use your card for everyday convenience. Don’t just focus on the big purchases. Use your card to pay for food, utility bills, movie tickets, and other small purchases. Having a credit card is incredibly convenient and a positive thing when you use it properly.

Expenses for college students obviously go far beyond tuition. The College Board reports that the average on-campus student at a public, four-year, in-state university spent $1,250 on books and supplies in 2017-18. With the aid of a student credit card, the burden of those secondary expenses can be lessened and fit within a budget and schedule that works for you.

Steps to applying for a student credit card

The first thing to consider before applying for a student credit card is your credit history. Start by answering the following questions:

• • • Have you ever had a credit card?
    • Have you ever taken out a loan?
    • Do you have a steady work/income history?

If you have never had a credit card and you currently have no loans or steady income, your best option for getting your own credit card account is to become an authorized user on a pre-existing account. An authorized user is in a good position to benefit from the cardholder’s (usually parents) habits, while not having to carry the responsibilities of paying the card balance.

If you already have a credit history, it’s important to know what your score is. Determining your credit score will let you know which cards you are likely to be approved for. Every time you apply for a credit card, your score will briefly drop by about 5 points, so it’s best to do it as few times as possible. Applying for cards you are declined for will still negatively affect your score.

First, request copies of your credit report, which you can do for free once a year from each of the three credit bureaus. You can also get a free credit report and credit score here.

Also, consider the following:

• • • Credit cards usually have foreign transaction fees. If you plan on studying abroad, take a look at foreign transaction fees, which can vary from 2-4%.
    • You should only apply for one card. Applying for several cards at once indicates risk and tells credit card issuers that you are desperate for credit. Do your research and stick to one application. If you’re denied, take steps to improve your credit (pay down other cards, loans, etc.) and apply for another card in a few months.

Once you have pulled your credit report, checked your credit score, and narrowed your search to one perfect card, you’re ready to apply.

Additional reviews and research

Need to do more reading before you make a decision? No worries, choosing the right credit card as a college student is a big deal. We’ve reviewed pretty much every major student credit card on the market today, with all the latest offer information and in-depth analysis. Check out all of our latest reviews below.

Best online brokers for stocks in August 2019

Technology has ushered in a new era in the investing world, including the ability to trade stocks from home and in real time. But what is the best online brokerage for stock trading in 2019? This can depend on the type of investor you are, the features you look for and how much you’re willing to pay for top notch trading technology.

Bankrate pored over all the features the major stock trading sites offer to help you find the best online stock trading platform for your needs. Here are our 2019 picks based on investing style and major benefits.

Here are the best online brokers for stocks in 2019:

• Fidelity – best for investing research
• TD Ameritrade – best for beginners
• Charles Schwab – best for low fees
• Robinhood – best for digital user experience
• E-Trade – best for ongoing education
• Ally – best for cheap trades

What to consider when choosing a broker

The best online stock trading websites offer consumer-friendly features and fees traders can easily justify. To come up with this list of options consumers should consider for their trades this year, we considered the following factors:

• Price: When it comes to fees, you’re in luck — fees have been dropping swiftly as a price war across the investing world wages on. For this list of best online trading sites, we considered fees and ongoing trading costs to see how they stack up.
• Broker resources: You’ll also want to consider factors like the kind of advice and research tools from the broker, the quality of the digital trading app, and the ability to place trades quickly and reliably, among other details.
• Strategy: The account you really want will ultimately come down to your personal investment strategy — including how frequently you plan to trade and whether you’re a beginner or are more experienced. We considered how each investing platform tailored its offerings to a different type of consumer.

Overview: top online stock brokers in August 2019

Fidelity – Best for investing research

Fidelity has a strong reputation for offering some of the best research and tools for consumers planning for retirement, which is part of the reason they have gained so much consumer trust.

Overview: As Bankrate’s in-depth review put it: “Fidelity is one of the few brokers out there where investors can do intensive research on every element of their portfolio without ever having to do a Google search or visiting a third-party site.”

The information available on their platform— which includes sophisticated screening tools, such as dividend screens with payout ratio and ex-dividend dates — makes the account a good option for investors who want to dig in.

Pricing: Fidelity’s pricing is also competitive for those who trade stocks frequently. Once you open an account, you’ll pay $4.95 for each stock trade.

Bolstering their reputation further is the fact that Fidelity Investment won first place in the customer experience rating in Investor’s Business Daily’s annual investor survey, which polled the people who ought to know best – customers who actually use their services..

Review: Fidelity earned 4.5 out of 5 stars in Bankrate’s review.

TD Ameritrade – Best for beginners

TD Ameritrade has introduced an interesting lineup of innovations over the last few years, many of which make them ideal for first-time investors who are comfortable with technology.

Overview: Most recently, the company made a splash by announcing that customers can now ask Alexa-equipped devices to buy and sell stocks in addition to other things they’ve been able to ask for months, such as getting market updates.

A voice command is designed to simplify your life at times when you’re, say, cooking spaghetti and have your hands covered in carbonara sauce — a scenario that would make firing up a mobile app more complicated. Besides that, there are plenty of people who think voice is the future of navigation.

On the consumer side, this platform gives you access to a library of educational content that includes almost 500 videos and more than 2,000 articles. Yes, that sounds a bit overwhelming. But that’s also why TD Ameritrade says its education center curates the most popular content based on the overall viewership numbers.

The company’s integral Trade Architect platform is also extremely easy to use, making it a popular option for first-time investors who want to get their feet wet.

Pricing: You will, however, need to spend a little more to make trades than you would at other companies. On the flip side, the fact that there are no account minimums makes this an attractive option for beginners.

Review: TD Ameritrade scored 4.5 out of 5 stars in Bankrate’s review.

Charles Schwab – Best for low fees

There’s a reason investing leaders like Warren Buffett continually harp on the importance of assessing investing fees.

Overview: The more fees you pay over the long haul, the more they eat away at your returns. When you pay less to invest your money and let it grow, on the other hand, you keep more of your money in your pocket.

Pricing: That’s why many cost-conscious investors opt to trade with Charles Schwab. The company’s online stock trading platform offers trades for $4.95 and options for $4.95 plus an additional $.065 per contract.

Yet, Charles Schwab won’t make you endure shoddy customer service in exchange for low costs. The company was ranked by J.D. Power as “Highest in Investor Satisfaction with Full Service Brokerage Firms, Three Years in a Row”.

Charles Schwab also has an innovative customer service policy that says clients can get refunds on related commissions, a transaction fee, or an advisory program if they feel unsatisfied — something Walt Bettinger, president and CEO of Charles Schwab, said you already expect.

“Today’s consumers expect great value, a great experience and a refund if they aren’t satisfied,” Bettinger said in a press release announcing the guarantee. “We believe a modern investing experience should deliver on these expectations – period.”

Review: Charles Schwab earned 4.5 out of 5 stars in Bankrate’s review.

Robinhood – Best for digital user experience

Robinhood is a newcomer, but the online brokerage has made quite a splash.

Overview: Robinhood’s mobile app is particularly useful and rewarding for consumers who give it a try.  The app itself is sleek and easy to use, and its language is more accessible than others. For example, the app’s help box leads with, “Hey! How can we help?” instead of formal, boring investing speak.

Robinhood’s research tools are less robust than other options, which is part of the reason this platform is more geared to experienced investors. However, there’s also an option to pay for premium services. And regardless, the limited approach helps make the experience feel less overwhelming.

Most recently, the company built an independent clearing system to settle and clear transactions. Translation: The digital customer experience should only improve from here.

Pricing: Why should you consider it? Not only does the fintech company offer a zero-fee stock trading app, it is aggressively striving to disrupt the industry and become a platform that offers all kinds of financial products and services.

Robinhood was founded in 2013, and the company already claims 6 million customers — many of whom are millennials.

Review: Robinhood earned 3.5 out of 5 stars in its Bankrate review.

E-Trade – Best for ongoing education

Investors who want to become lifelong learners need an online stock trading platform that continually educates them as markets change.

Overview: This is one area where E-Trade absolutely shines.

Not only does the platform offer a library of educational tools, but they roll out a merry go round of webinars, news clips and educational videos aimed at investors of all speeds. You can also check in with E-Trade analysts for up-to-date analysis and commentary that can help you craft your trading strategy.

If you’re worried about being left to invest on your own, rest assured that E-Trade also offers 24/7 phone support and an online chat option. Their helpful customer service representatives can help you navigate the online platform or answer timely questions.

Pricing: With these benefits in mind, we believe E-Trade is ideal for careful investors who want to keep learning more with each passing year. While E-Trade isn’t the least expensive online stock trading site, sometimes you get what you pay for.

Review: E-Trade earned 4 out of 5 stars in its Bankrate review:

Ally – Best for cheap trades

Keeping costs low is the name of the game in the investing world, and this is one area where Ally stands out.

Overview: If you’re a buy-and-hold investor who is simply seeking a low fee structure, it’s hard to beat the low costs and simplicity of Ally. With that in mind, the overall lack of commission-free mutual funds and ETFs could make it a poor option for consumers seeking these options.

Pricing: Trades cost just $4.95, and each options trade is $4.95 plus $.65 per contract. Ally does not charge an inactivity fee if you take time off from trading, and they don’t charge an annual fee, either.

Active investors can also benefit from $3.95 equity trades, although you’ll need to have more than 30 trades each quarter, 10 trades per month or a balance of $100,000 to qualify.

Review: Ally Invest earned 4 out of 5 stars in its Bankrate review:

Which Type Of CD Is Best For You?

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The traditional certificate of deposit account remains the most popular type of CD. However, it’s far from the only option. Financial institutions offer a variety of non-traditional CD products. These specialized CDs can: give savers more flexibility to benefit from rising rates, provide early access to their funds or offer better-than-average rates of return. If you’re willing to sacrifice some yield or tolerate some additional risk, you might find a CD better suited to meet your financial needs.

But first, what is a CD account?

A certificate of deposit is a time deposit account. A bank agrees to pay interest at a certain rate if savers deposit their cash for a set term, or period of time.

11 types of CD accounts

1. Traditional CD

With a traditional CD, you deposit a fixed amount of money for a specific term and receive a fixed interest rate. You have the option of cashing out at the end of the term or rolling over the CD for another term. Most institutions don’t allow you to add additional funds before your traditional CD matures.

Penalties for early withdrawal can be quite stiff and will cause you to lose interest, and possibly principal. Federal regulation — Regulation D, specifically — sets only the minimum early withdrawal penalty for traditional CDs. There is no law preventing an institution from enacting tougher penalties, but the institution must disclose those fees when the account is opened.

Before you pick a CD, it’s important to calculate how much interest you could earn by the end of your term.

2. Bump-up CD

A bump-up CD helps you benefit from a rising-rate environment. Suppose you buy a two-year CD at a given rate, and six months into the term the bank offers an additional quarter-point on the same investment.

A bump-up CD gives you the option of telling the bank you want to get the higher rate for the remainder of the term. Institutions that offer this CD option usually allow only one bump-up per term.

The drawback is you may get a lower initial rate on a bump-up CD than on a traditional CD. The longer it takes interest rates to rise, the longer it will take to make up for the earlier, lower-rate portion of the term.

Be sure you have realistic expectations about the interest-rate environment before buying a bump-up CD. See how bump-up CD deals stack up against traditional CD rates.

3. Step-up CDs

In a rising-rate environment, you might also want to consider a financial institution that offers a step-up CD.

It’s not uncommon to see a step-up CD and a bump-up CD lumped together. Both of them will help you move up into a higher yield. However, they are different products. Rather than requiring you to ask the bank for a higher rate as bump-up CDs do, step-up CDs will automatically increase their rates throughout their terms at certain intervals.

They are not too common, however. Moreover, there is a big caveat: There is no guarantee that you would end up better off than you would have if you had parked your money in a traditional CD. The blended APY could be less than you would make with a traditional CD. As such, you’ll want to evaluate the starting APY as well as how much the rate is increasing before making a decision.

4. Liquid CD

Liquid CDs, or no-penalty CDs, offer investors the opportunity to withdraw their money without incurring a penalty. However, these types of CDs may come with strict withdrawal limits and large minimum investment requirements.

You can generally expect the interest rate on a liquid CD to be higher than that of a savings or money market deposit. But it’s usually lower than the rate on a traditional CD of the same term. You’ll have to weigh the convenience of liquidity against whatever return you’re sacrificing.

A key consideration when purchasing a liquid CD is how soon you can make a withdrawal after opening the account. Most banks require that the money stay in the account for at least seven days before it can be withdrawn without penalty, but banks can set the first penalty-free withdrawal for any time period. It’s important to read the fine print before picking up a liquid CD.

5. Zero-coupon CD

These CDs are similar to zero-coupon bonds. As with the bond, you buy the CD at a deep discount to its par value (or the amount you’ll receive when the CD matures).

“Coupon” refers to a periodic interest payment. “Zero-coupon” means there are no interest payments.

So, you might buy a 12-year, $100,000 CD for $50,000, and you wouldn’t receive any interest payments over the course of the term. You’d receive the $100,000 face value when the CD matures.

One drawback is that zero-coupon CDs are usually long-term investments, and you take on considerable interest-rate risk. If interest rates rise during the 10-year term in question, you’ll be on the losing end of that deal.

Another potential problem is that you’re credited with phantom income each year. No money is being put in your pocket, but you’ll have to pay Uncle Sam on the earnings being accrued.

In our example, you’d earn $3,000 during the first year and would owe tax on the money, though you haven’t actually received it. Each year, you’ll have a higher base than the year before — and a bigger tax bill. Make sure you have room in your budget to cover the taxes.

6. Callable CD

With a callable CD, you could get a higher yield than with traditional CDs but with a risk: the bank that issues the CD can “call” it away from you after your call-protection period expires, and before the CD matures. For instance, if you buy a five-year CD with a six-month call-protection period, the institution could call it back after the first six months.

Just as with the zero-coupon CD, the bank is shifting interest-rate risk on to your shoulders. If it issues a five-year CD at 3 percent and six months later rates drop by a full percent, the bank will drop its rate as well. It’ll now be paying 2 percent on the five-year CD you originally got at 3 percent.

The bank can call, or take back, your CD and reissue it at the lower 2 percent. You’ll receive your full principal and interest earned. But you’re stuck reinvesting your money at lower rates.

Usually, banks pay a premium for you taking on the risk that the CD may be called. They may pay investors a quarter- or half-percent more on a callable CD than they would on a CD without the call feature.

7. Brokered CD

A brokered CD is simply a certificate of deposit sold through a brokerage firm. To qualify for one, you’ll need a brokerage account. Some banks use brokers as sales representatives to find investors willing to purchase the banks’ CDs.

Buying CDs through a brokerage can be convenient. There’s no need to open accounts at a variety of banks just to get the best CD yields. Brokered CDs may pay higher rates than CDs from your local bank because banks using brokered CDs compete in a national marketplace. But that’s not always the case.

Brokered CDs are more liquid than bank CDs because they can be traded like bonds on the secondary market. But there is no guarantee you won’t take a loss. The only way to guarantee getting your full principal and interest is to hold the CD until maturity.

Don’t assume all brokered CDs are backed by the Federal Deposit Insurance Corp. It’s up to you to do your due diligence and look for that FDIC seal on the broker’s website. You should also watch out for brokered CDs that have call options. And before you invest, check on fees and early withdrawal policies.

8. High-yield CD

Banks compete for deposits by offering better-than-average rates. High-yield CD accounts may offer two or three times the national average on a given term. These are generally traditional CD accounts that pay very generous returns. Bankrate offers the best route for finding the highest rates in the nation.

Bankrate surveys local and national institutions to find banks offering the highest yields on CDs. All accounts are directly offered to the consumer by the institution.

Take time to compare the best CD rates. Then calculate your potential earnings.

9. Jumbo CD

Just as its name implies, a jumbo CD requires a larger deposit than a traditional CD. To get one, you would typically need to make a minimum deposit of $100,000. In some instances, that deposit threshold will be somewhat lower.

While jumbo CDs could pay more than a traditional CD, they might not. A five-year jumbo CD on average pays 1.55 percent APY, while a 5-year CD rate pays 1.49 percent as of late January, according to Bankrate’s national survey of banks and thrifts.

In putting tens of thousands of dollars into a jumbo CD, there’s a risk of whether the account will keep up with the inflation rate. Also don’t forget to consider your tax bite: The interest you earn will be taxed as ordinary income.

10. IRA CD

Individual retirement accounts hold investments. IRA CDs are IRAs where you invest in CDs.

IRA CDs may appeal to the risk-averse who are preparing to pad their retirement savings with guaranteed returns – you’ll know how much you’ll make over the product’s term so long as you keep the CD until its maturity. You will also have protection of up to $250,000 from the government if you purchase IRA CDs from an FDIC-insured institution. Translation: If the bank goes bust, your money won’t.

The trade-off is that you won’t make high returns on these investments. While they can help you diversify your portfolio, IRA CDs are not generally viewed as smart retirement strategies for younger investors, who can take on more risk.

Just like with the other CD types, make sure you shop around for the best yields. To effectively use an IRA CD, fund one with money you won’t need until age 59 1/2, so you don’t have to pay a tax on early distributions.

11. Add-on CD

Most CDs let you make only an initial deposit. But add-on CDs let you make multiple deposits into the account during the CD’s term. However, how many deposits you can make into an add-on CDs varies. So, make sure you read the fine print.

These accounts are worth considering if you are saving for a goal.

Make sure you look around to find the best rates. And reminder, try not to lock up your money for too long at times when interest rates are expected to increase.