If i start a CD from my bank, am i able to make additional deposits once started?

Question

I am thinking of opening a certificate of deposit to help me save for a house. Once i start one, can i keep depositing money into it? And can my interest go down if i take out a two year cd or is it fixed interest?

Answer 1

Generally a CD is a time deposit and you purchase one with a set lifetime. Early withdrawal will generally incur early withdrawal penalties, which are tax deductible, but you lose money. You can buy additional CDs rather than making additional contributions to the original CD. The point of a CD is that you get a fixed rate of interest for a set period of time, and the bank knows it has your money to play with for that set period of time. Because you're tying your money up for a set time period, the interest is fixed--usually above the savings account rate, and you pay a penalty if you take it out earlier. Talk to your banker, you probably need a money market account.

Answer 2

That depends on the type of CD you plan on getting. Check with you financial representative in your bank. If you take out your 2 year Cd you have two options- 1- Keeping the money 2- putting it into another CD, plus by the time your Cd matures, there might be another CD with a higher interest!

Answer 3

Yes you can make additional deposits, like once per month or whatever. And for the interest, it is really determined by the bank, you have to ask a banker because some CDs might have introductory interest percentage and after a certain time it might go down,

Answer 4

You have to ask the banker about additonal deposits.
At the bank where I worked one could not add funds untill it came to maturity. some were for 1 month others for six months. the interst wont go down once you open it. It will go down once it matures and you add more funds. get a high interst savings account there is more flexability. Now if you want to have a cd, for it. its just not as flexable as one may think. keep in mind that intrest rates went down a bit.

Answer 5

Once you open a CD you cannot add to it, you have to wait until it matures to make any changes. Likewise, if you break it (withdraw) you get charged a penalty and they deduct the prorated interest earned. Most banks have a nice rate on the short-term CDs (6mos - 12mos.. depending on the bank) and it is a better way to save.

Answer 6

It depends what bank ure with if its a well known bank such as :
Halifax
Barclays
Alliance and lecsiter
Or any high street bank you could start away. If its a unknown bank like theres one in the world no it would have to transfer to its HQ somewhere I would go with a high street bank and do not go into online banking happy depositing hope the certificate looks nice!

Answer 7

I don't think you can make a deposite when you start a cd but it depends on your bank; Check with your local bank.

Answer 8

Yes you can. Some banks let you automatically transfer money from your checking or savings account into your CD. For a higher yield, you should try a money market account. Good luck!

Answer 9

I JUST OPENED ON AND MY BANKER TOLD ME TO GET ONE FOR SEVEN OR NINE MONTHS AND EVERYTIME THE RENEWAL COMES AROUND GO TO THE BANK AND RENEW IT IN PERSON BECAUSE THAT WAY I COULD GET A BETTER INTEREST RATE. NEVER LET IT ROLL OVER WITHOUT U CHECKING THE RATE CUZ THE BANK WILL NOT GIVE U THE PRESENT RATE UNLESS U GO IN. EX. IF U OPEN IT AT 3.0 PERCENT AND IN NINE MONTHS IT WENT UP TO 5.0 AND U DIDN'T GO IN THE BANK WILL KEEP IT AT 3.0 AND U WILL LOSE OUT OK

Answer 10

For me, Pain of Salvation's "Scarsick" was a big let-down. Their earlier albums "The Perfect Element" and "Remedy Lane" were some of the greatest releases in prog music, so I was pretty excited when I heard they were releasing a new album last January. Unfortunately, I thought "Scarsick" was musically obnoxious, and some of the lyrics actually made me cringe. "Flame to the Moth" and "Disco Queen" are excellent, but this album was one of the biggest disappointments of the last year. Btw, great PT reference in your question. :)