: Permits you to make additional deposits after the initial account opening, which is not usually allowed with traditional CDs.
Understanding Certificates of Deposit: A Safe Investment Option bank cd
: CDs at banks are insured by the FDIC , and those at credit unions by the NCUA , for up to $250,000 per depositor. : Permits you to make additional deposits after
A bank is a low-risk savings account that holds a fixed amount of money for a fixed period of time, in exchange for a guaranteed interest rate. Core Features Core Features : Requires a large minimum deposit—typically
: Requires a large minimum deposit—typically $100,000 —in exchange for a higher interest rate.
: This is the date the term ends, at which point you receive your initial deposit plus all earned interest.
This protects your returns from market fluctuations or falling federal interest rates.