Certificate of Deposits (CD)

Certificates of Deposit (CDs) explained: their types, details, a real-world example, and the role as low-risk, interest-earning savings tools offered by financial institutions.

Traditional CD

Traditional CD

Traditional CDs offer higher interest rates for fixed terms, with penalties for early withdrawal.

Frequently Asked Questions

A Traditional CD is a type of fixed-term deposit account offered by banks and credit unions. You deposit a sum of money and agree not to withdraw it for a certain period, earning interest in return.

No-Penalty CD

No-Penalty CD

No-Penalty CDs offer flexibility to withdraw funds before maturity without penalties, albeit with lower rates.

Frequently Asked Questions

A No-Penalty CD is a type of Certificate of Deposit that allows you to withdraw your money before the maturity date without incurring a penalty.

High-Yield CD

High-Yield CD

High-Yield CDs offer higher interest rates for larger deposits or longer terms, but may have withdrawal penalties..

Frequently Asked Questions

A High-Yield CD is a type of CD that offers a higher interest rate compared to a traditional CD. It is designed to attract depositors willing to invest larger sums or commit to longer term lengths.