Certificate of Deposit

[kanjoh321]

What is a certificate of deposit?

[kanjoh]

A certificate of deposit, or CD, is issued by a bank as an interest-paying security. CDs are considered safer when they have FDIC insurance, as the funds are then guaranteed by the FDIC in addition to just the credit of the bank.

[BillK]

CDs are similar to savings accounts. They are different from savings accounts in that the CD has a specific, fixed term and usually a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.

Right now their interest rates are incredibly low for how long you need to commit your funds. You might get $5-$10 for a$1,000 over a year. This may cover your gas money to drive there and get one. However, They do serve certain financial benefits depending upon why you want to get one

[KellyJef]

Do you guys think that the interest rate on CD's will ever go back up to what they used to be?

[disneysteve]

Do you guys think that the interest rate on CD's will ever go back up to what they used to be?

Yes. As the economy recovers, interest rates will gradually rise. Right now, the Fed is keeping rates low to help stimulate the economy. Given time, the cycle will head back the other way.

[EconoMutt]

I'm sure CD rates will rise eventually.
The Fed funds rate is essentally at 0% but will have to go up soon.

[investingnoob]

My BECU still is a pitiful below 1% rate
But my Ally account bumped up to 1.80%! from 1.75

[Ima saver]

My checking account is paying 2%