Before you lock in, make sure the early-withdrawal penalty isn’t onerous. By Jessica L. Anderson, Associate Editor From Kiplinger's Personal Finance, October 2013 Rates on certificates of deposit are finally starting to tick up. Internet banks have recently been offering five-year CDs yielding 2%, compared with an average of 0.69% for all five-year certificates. The average was about 3% in 2008. SEE ALSO: Treasury’s New Option for Savers: Floating-Rate Notes Even marginally higher rates are tempting for yield-starved savers. But if rates are headed higher still, shouldn’t you wait to lock in? “It’s too early to say whether we’ve turned a corner,” says Ken Tumin, of DepositAccounts.com. To take advantage of today’s higher rates without getting stuck, go for the highest-rate CD with the lowest early-withdrawal penalty. For example, iGObanking.com is offering a five-year CD yielding 2.05% with an early-withdrawal penalty equal to 180 days’ interest. Say you invest a chunk of savings, and after a year you find that market rates are more competitive. Even after the penalty, your yield would be 1.03%. The highest rates for one-year CDs and online savings accounts are currently about 1%, so you have nothing to lose. If rates stay where they are or drop, you’re ahead of the game; if they rise, you can pull the money out and reinvest. You could make out even better with a reduced penalty, even if the rate is lower. Ally Bank’s five-year CD yields 1.5% with a 60-day early-withdrawal penalty. Pull out the money after a year and your yield would be 1.25%. See more CDs with high-yield rates.