Best Banks in Austin Texas 73301

1 view

Skip to first unread message

Bill Shoubless

unread,

Jun 12, 2019, 3:45:22 PM6/12/19

to Best Banks in Austin

CERTIFICATES OF DEPOSIT

CDs for music are a thing of the past. CDs for savings accounts are the future. Check them out. Come in to one of our locations or call us for various terms and rates.

Commonly referred to as a CD, a Certificate of Deposit can be used as a short or long term investment. Domestic banks offer FDIC (Federal Deposit Insurance Corporation) insured Certificates of Deposit with higher rates of return than other investment options. The bank retains money for a specified period of time with the promise to repay the principal and interest to the depositor at the conclusion of the investment term.

Depending on the amount of money you invest, and the particular terms of the bank you choose to invest with, you may choose to invest your money for a period as short as one month to six years. There is usually a penalty for withdrawing money from a CD prior to the maturity date. Banks will also require a minimum deposit to open a Certificate of Deposit.

Though they are somewhat of a staple of the financial services offered by banks, a large number of people aren't entirely sure how certificates of deposit work. They might know that certificates of deposit, or CD's, are usually purchased from a bank and that they last for set periods of time, but they might not know how savings are built with these CD's or what some of the terminology associated with CD investments mean.

The information below is meant to serve as an introduction to certificates of deposit, and should help to answer some of the more basic questions that you might have concerning CD's. As with any financial investment, it's important to make sure that you understand exactly how certificates of deposit work and how you can use them to augment your savings before putting your money into a CD. Check with your preferred bank for information about the specifics of their certificates of deposit or perform additional research online before investing your money.