Consumers can seek the best rates by conducting research online. Other companies such as MaxMyInterest will find the best rates for consumers without having to switch banks.
"The highest yielding bank on our platform is now paying 1.31% on fully liquid, FDIC-insured bank deposits without an account minimum or maximum," said Gary Zimmerman, CEO of MaxMyInterest, a New York-based company which maximizes cash balances for savers. "You can link your existing checking account with us."
Online banks typically offer the highest yields because their cost structure is lower, he said.
While some investors opt to ladder their CDs with varying maturities, one catch which emerges is that if rates rise faster than expected, investors "will miss out on the opportunity to benefit from the increase in rates," Zimmerman said.
"In a rising rate environment, it is important for investors to pay attention to the cash portion of their portfolios," he said. "A simple savings account at an online bank can often beat a traditional bank CD. Several online banks are offering savings accounts that offer two times the yield of even a five-year CD at a brick-and-mortar bank."