: You agree to leave your funds untouched for a specific duration, typically ranging from 3 months to 5 years .
Understanding Certificates of Deposit: A Safe Investment Option bank cd
: CDs at banks are insured by the FDIC , and those at credit unions by the NCUA , for up to $250,000 per depositor. : You agree to leave your funds untouched
: Gives you the option to "bump up" your interest rate once or twice if the bank’s rates for new CDs rise during your term. for up to $250
This protects your returns from market fluctuations or falling federal interest rates.
: If you need to access your money before the maturity date, you will typically be charged a fee, which often equals several months of earned interest. Common Variations