Certificates of Deposit
The Basics and Nuances of certificates of deposit
Frequently Asked Questions
What kind of penalties do CDs have?
The financial institution offering your CD typically charges you a fee if you decide to withdraw funds from your CD before it matures. These fees are usually equal to the interest you've earned over a certain number of months.
Why do CD rates change so much?
Do credit unions offer CDs?
Do banks offer no-penalty CDs?
Yes, there are several banks and credit unions that offer penalty-free CDs, also known as "liquid CDs." Typically, you'll be able to withdraw some (not all) of your deposit before maturity without paying a fee.
Who invests in CDs?
CDs tend to be a good investment for people who want stable, low-risk investments. This could include first time investors, people who are close to retirement, or those who want to earn more interest on their cash than what they'd get in a high-yield savings account.
A certificate of deposit, or CD, is a savings vehicle with a fixed deposit held for a fixed term and yielding a fixed rate of interest.
Brokered certificates of deposit (CDs) are CDs you buy through a financial intermediary instead of directly through your bank or credit union.
An IRA CD is a combination of an individual retirement account (IRA) and a certificate of deposit (CD).
A CD ladder is a series of CDs that are set to mature over a predictable time frame.
A six-month CD is a CD with a maturity of six months. After the six months are over, you can withdraw your deposit plus interest.
A CD's maturity date is the date on which you can withdraw your CD. You may also have the option to renew your CD, extending the maturity date.
A step-up CD is a type of certificate deposit (CD) with an interest rate that increases over time. A traditional CD typically has the same interest rate for its duration.
Promotional CD Rate
A promotional certificate of deposit (CD) rate is a higher-than-standard rate that banks offer customers who can meet certain requirements.
A variable-rate CD is a financial product that allows you to deposit money for a fixed amount of time with an interest rate that may fluctuate based on market conditions and other factors.
A liquid certificate of deposit (CD), also called a "no-penalty CD," allows you to withdraw funds from the account before the term expires and pay no early withdrawal penalty for doing so.