Are you looking to save money for a specific goal in the short term? If so, there's a good chance that a certificate of deposit, or CD, may be in your best interest. The act of saving money can be a challenge, especially if you don't know how much you have to conserve. If you're interested in using this option, here are a few questions that the likes of Robert Jain can answer, providing you with the insight you're looking for.
"What, exactly, is a certificate of deposit?" According to names such as Bob Jain, a certificate of deposit is a savings account that locks in your money with a fixed interest rate. Furthermore, this can be set during a specific length of time, meaning that it can last for as little or as long as one would like. Whether it's for a few months or several years, a CD is designed to hold money until it's time for it to be accessed.
"Before I open a CD account, what should I have?" To start, make sure that you have a minimum account that your specific account calls for. For instance, if you decide to open a regular CD, you may have to put up $1,000 upfront. A jumbo CD, on the other hand, can require as much as $100,000 to start. You will also need a solid credit score before you're even approved for an account. Consult your local bank for more information.
"What penalties, if any, come with CD accounts?" Perhaps the most notable is the early withdrawal penalty, which occurs when money is taken out too early. You may not have as big of a penalty if your account is relatively new, but the chances of paying more are increased when more money is saved. What this means is that you have to take your time to decide if this account is the best option for you. Furthermore, if you decide that it is, understand that the account is most effective when left alone.
"Are there other resources that will help me learn about CDs?" The Internet is packed with resources that will help you learn more about CDs, including the benefits they provide. With a number of articles and studies to unearth, you'll find yourself becoming familiar with this topic in no time. You can also learn about these accounts by contacting your bank. The representative on the other line will be happy to tell you more.
"What, exactly, is a certificate of deposit?" According to names such as Bob Jain, a certificate of deposit is a savings account that locks in your money with a fixed interest rate. Furthermore, this can be set during a specific length of time, meaning that it can last for as little or as long as one would like. Whether it's for a few months or several years, a CD is designed to hold money until it's time for it to be accessed.
"Before I open a CD account, what should I have?" To start, make sure that you have a minimum account that your specific account calls for. For instance, if you decide to open a regular CD, you may have to put up $1,000 upfront. A jumbo CD, on the other hand, can require as much as $100,000 to start. You will also need a solid credit score before you're even approved for an account. Consult your local bank for more information.
"What penalties, if any, come with CD accounts?" Perhaps the most notable is the early withdrawal penalty, which occurs when money is taken out too early. You may not have as big of a penalty if your account is relatively new, but the chances of paying more are increased when more money is saved. What this means is that you have to take your time to decide if this account is the best option for you. Furthermore, if you decide that it is, understand that the account is most effective when left alone.
"Are there other resources that will help me learn about CDs?" The Internet is packed with resources that will help you learn more about CDs, including the benefits they provide. With a number of articles and studies to unearth, you'll find yourself becoming familiar with this topic in no time. You can also learn about these accounts by contacting your bank. The representative on the other line will be happy to tell you more.