Difference between revisions of "Certificate of deposit"

From Conservapedia
Jump to navigation Jump to search
(→‎See also: Spelling/Grammar Check & Cleanup)
m
Line 1: Line 1:
−
A '''certificate of deposit''' (CD) is a monetary option offered by [[bank]]s where a client can put an amount of money into a certicate that is then tied up for the length of the contract at a set rate of return.  The longer the contract term, the greater the [[interest rate]] offered in most cases.  Any attempt to take money out of the certificate of deposit before its expiration date would result in a monetary penalty.
+
A '''certificate of deposit''' (CD) is a monetary option offered by [[bank]]s where a client can put an amount of money into a certicate that is then tied up for the length of the contract at a set rate of return.  Often a minimum amount is required, often $1,000 (though sometimes as little as $500 can be deposited).
  
−
Many certificates of deposit also offer graduated rates based upon the amount of money to be deposited or may have a minimum requirement to open a certificate of deposit.  For those with graduated rates, the rates of return are usually greater for higher deposit amounts.
+
Generally speaking, the longer the contract term and/or the more deposited, the greater the [[interest rate]] offered.
  
−
Ex. A CD may pay 5.00% interest for 9 months for deposit values < $10,000, 5.25% for amounts > $10,000 but < $50,000, or 5.50% for amounts over $50.000 with a minimum starting outlay of $2,000 to open the account.
+
Any attempt to take money out of the certificate of deposit before its expiration date would result in a monetary penalty.
  
 
==See also==
 
==See also==
Line 12: Line 12:
 
[[Category:Banks]]
 
[[Category:Banks]]
 
[[Category:Finance]]
 
[[Category:Finance]]
−
 
−
 
−
==References==
 
−
{{reflist}}
 
−
 
 
[[Category:Retirement]]
 
[[Category:Retirement]]

Revision as of 22:22, February 24, 2019

A certificate of deposit (CD) is a monetary option offered by banks where a client can put an amount of money into a certicate that is then tied up for the length of the contract at a set rate of return. Often a minimum amount is required, often $1,000 (though sometimes as little as $500 can be deposited).

Generally speaking, the longer the contract term and/or the more deposited, the greater the interest rate offered.

Any attempt to take money out of the certificate of deposit before its expiration date would result in a monetary penalty.

See also

Retrieved from "https://www.conservapedia.com/index.php?title=Certificate_of_deposit&oldid=1496744"