What is a Certificate of Deposit?
A CD or certificate of deposit is an interest-bearing note
issued by a bank. These are time-related notes that grow and are payable
according to your contractual arrangement with the bank. The time period may
vary from thirty days to ten years. Typically, the longer the maturity time
period, the higher the interest earned. Early withdrawal results in forfeiture of
a substantial portion of the interest.
Certificate of deposits are insured up to $100,000 per
depositor if the issuing bank is a member of the Federal Depositors' Insurance
Corporation (FDIC). Those issued by a Savings and Loan should be insured by the
Federal Savings and Loan Insurance Corporation (FSLIC).
© Athena G
Read more...
Posts
