Maximize your Savings
Get some tips on how to maximize your savings with a Certificate of Deposit (or CD) account
Compare CD Accounts
Compare the best CD accounts providers to make the most of your savings
Types of Savings Accounts
If you’re not clear on what savings account may be best for you, learn about the different options
Advantages of Saving Accounts
We’ve put all the advantages of saving and savings accounts in one place for you
What is a CD Account?
A Certificate of Deposit Account, also referred as a CD account is a type of savings account. It has a fixed term, knows as maturity date and a fixed interest rated for the agreed period of time. All funds in a CD account are federally insured and they don’t usually charge any monthly fees.
In other types of savings accounts, you are free to withdraw or deposit money at your convenience, while inn CD accounts you agree to leave money for a set period of time. You can still access the funds, however you may have to pay a fee to do so before the end of the agreed period. The period of time you agree to leave money in a CD account can vary, it can go for as little as 3 months to as much as 5 years. As a general rule, the more money you deposit and the longer you deposit it for, the higher interest rate the bank will offer you.
CD accounts are a good way of making money out from savings if you don’t need access to your funds with a very low risk.
What Do you Need to Open a CD Account?
The first thing you need to do is to identify the type of account you want to open, and a federally insured institution that offers this type of account.
After you have identified the best account as well as the institution, choose the term (how long you want to leave the money in the account for) and how often you may want to receive interest on your savings (this may vary between accounts and institutions). Now you can proceed with opening your account and deposit the funds. And start getting money back in interest for your savings.
How do you Choose the Best CD Account?
As there are different types of CD accounts, one way to choose the best CD account for you would be to determine how much money you want to deposit for how long, then find the type of account and institution that gives you the higher interest rate at the minimum cost. This will ensure you are making the most out from your savings which is the goal when choosing the best CD account.