Info about a bank CD's?

Question

If someone could explain the bank CD savings account to me I would apprecite it. How much money do you have to have to open an account? Are there certain years you have to leave the money in there? Or take it out whenever? About how much interest would you gain? Thanks in advance.

Answer 1

well provided you live in the US they all kinda work the same but each bank has different rates and minimums.

when you ask a bank for their rates, they will have a piece of paper with about 50 different terms (length of time you leave your money in) each with different rates. the longer you leave your money, the higher the interest rate. sometimes they have specialty cd's that will have a decent interest rate and with no penalty for early withdrawal. oh, btw, with MOST cd's you will indeed get a penalty for withdrawing early. you can have a cd from anywhere from a week to 10 years or more!!! most interest rates last time i checked capped at around 5%, meaning if you put in $1000, by the time you go full term, you will have earned $50. the payback isn't huge, BUT it is almost always higher than savings accounts! initial investments vary as well, but most often it's around $1000 for a regular term cd and $5000 for specials. (at least at the bank i worked at.....)

but for specific rates, check your bank's website or call around to a couple banks and ask if they have any specials...

hope i answered everything!

Answer 2

financial corporation CDs (certificates of deposit) are the kind you lend the financial corporation money for a volume of time, and the financial corporation provides to pay you pastime on the money. maximum CDs renew immediately except you notify the financial corporation for the period of the grace era (7 days?) which you do no longer desire the CD to be renewed. The banks will the two pay the pastime to you or your checking/reductions account, or will upload the pastime to the CD on adulthood. long-term CDs (a million year or greater) in many situations pay the pastime each 6 months, yet some pay the pastime month-to-month. a modern-day financial corporation of united states of america of america CD for a 7 year term on quantities under $10,000, had a reported pastime fee (in step with year) of three.fifty 4% and an APY (annual share yield) of three.60%. Why the adaptation? The financial corporation calculates the pastime earned each month (a million/12 of three.fifty 4%) and provides that quantity to the CD fee. the subsequent month the the financial corporation calculates the pastime on the unique CD plus the pastime earned on the pastime from the earlier month. The compounded pastime fee (APY) could be calculated by using (a million+r)^n-a million. r= 3.fifty 4%/12=0.00295, n=12 months (a million.00295)^12 -a million = 0.03598 or 3.598%

Answer 3

You can buy a CD at the bank for as little as $500. Rate of interest depends on how long your willing to hold it. It can be as little as six months up to 18 or so. Talk to a personal banker and ask them to explain the best rate.

Answer 4

CDs are $$$ that you agree to leave in for a fixed period of time ( starting at about 3 months & goes up) for which you receive a bit more % than standard savings that you can withdraw at any time .
Look at INGs CD options . . .

http://home.ingdirect.com/products/products.asp

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