Can someone please explain Certificates of Deposit to me?

You put in a minimal amount of $500 to $1,500 (depending on the bank)

You lock in the money for a certain term. Up to 5 or 7 years at some banks.

They pay you higher interest in return.

Some are paying about 2% interest - you just have to look around at different banks.

- Do not use big-boy banks for this.

Such as Wells Fargo, Bank of America, Chase, Cit.

They have high fees in case you need to break a cd.

They also have something called automatic re-new.

You have to mail in a letter requesting for the cd to expire 1 month prior to expiration.

No letter, and the cd renews and then you have to pay penalties to get the money out.

Consider big boy banks scammers for this trick that few people are aware of.

Use a credit union or small local bank for this.

Arab A cd is a time deposit. "Time" considering which you guarantee to maintain the money on deposit for a particular term. consequently you will save the money in for 36 months. the fee you're being quoted isn't one million.seventy 5% consistent with month. that's one million.seventy 5% consistent with 3 hundred and sixty 5 days. Savins costs all over the realm are at historic lows..... i does not puit the money in a cd. i might decide on a usual fee reductions account, and upload to it a week. Ypu can link it on your checking account so as which you have get entry to on the ATM, online banking.... and you will set up computerized pass from checking to fee reductions! The activity fee isn't as significant as saving the money so which you have it accessible for the destiny! save up the saving! Soccerref

A certificate of deposit is a fixed anount of money you want to invest into that certificate of deposite for a certain amount of interest over a fixed period of time. For example: Say you have $10,000.00 and you invest it in a CD for 48 months @ 1.00% interest.