CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks and by the National Credit Union Administration (NCUA) for credit unions.hey are different from savings accounts in that the CD has a specific, fixed term (often monthly, three months, six months, or one to five years) and, usually, a fixed interest rate. Certificates of deposit, or CDs, are worth exploring, because they offer higher interest rates than savings accounts and are federally insured up to $250,000.The downside to CDs is the investment and accrued interest are inaccessible for a set time without paying a penalty for early termination.
When you realize that they're talking about certificates of deposit (CDs), you awkwardly back out of the conversation. If this sounds familiar, you're not alone. Most of us don't realize the wide range of investment options that fall between savings accounts and stocks. CDs are just such an investment. Although savings accounts are a solid first step to securing your finances, they offer paltry advantages beyond that. The interest on them tends to be relatively measly. Say, for instance, you're doing comfortably right now and have a healthy savings stowed away. If you want to see it grow a bit to make sure you can afford retirement or a child's college tuition (and you don't like the idea of trusting a volatile stock market), CDs are a good alternative. Opening An Account. In order to deposit money into a certificate of deposit (CD), a customer must have an account with a financial institution. To open an account, a customer needs to provide personal information, some of which is required by law. This information includes at least a full name, address and taxpayer ID. CD Matures. When the full period of time specified in the CD term has elapsed, the account is said to have matured.. When a CD matures, the customer has two options. One option is to re-deposit the money into another CD with the same terms at the current interest rate. This is called rolling over the CD.. Many banks will do this automatically a certain number of days after maturity unless instructed differently by the account owner A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions. CDs are similar to savings accounts in that they are insured and thus virtually risk free; they are money in the bank.. In the USA, CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks and by the National Credit Union Administration (NCUA) for credit unions. They are different from savings accounts in that the CD has a specific, fixed term (often monthly, three months, six months, or one to five years) and, usually, a fixed interest rate. Start by taking some money you’ve saved and open a certificate of deposit (CD) or savings account. Then ask the credit union or bank to give you a loan against the money in your account. In exchange, you have no access to your money -- you give your passbook to the bank and the bank won’t give you an ATM card for the account -- so there’s no risk to the bank if you fail to make the payments. Talk to a Lawyer. Enter Your Zip Code to Connect with a Lawyer Serving Your Area. If you want to repair your credit and cannot get a credit card or regular loan, consider getting a bank or credit union loan secured by Funding the CD Account. Once an account is opened, a deposit is made to fund the account. By funding the account, the account owner agrees to the terms of the CD, which includes a time frame and an interest rate, as well as rules and procedures affecting the account. CD Matures. When the full period of time specified in the CD term has elapsed, the account is said to have matured.. When a CD matures, the customer has two options. One option is to re-deposit the money into another CD with the same terms at the current interest rate. This is called rolling over the CD.. Many banks will do this automatically a certain number of days after maturity unless instructed differently by the account owner A Money Market Account is a type of savings account that usually earns a higher amount of interest than a basic savings account. The minimum balance for this account is often considerably higher than the minimum balance of a basic savings account. They can range from $500-$50,000. When you deposit money into your Money Market Account, it earns interest just like a regular savings account. That interest is the bank's way of thanking you for letting them use your money. Banks then take that money and make other investments or loans Building a nice nest egg goes beyond hard work and frugal living. To maximize your retirement, you want your savings to grow. Certificates of deposit, or CDs, are worth exploring, because they offer higher interest rates than savings accounts and are federally insured up to $250,000. The downside to CDs is the investment and accrued interest are inaccessible for a set time without paying a penalty for early termination.  Certificates of deposit (CDs) typically outperform bank savings accounts and in the U.S. are guaranteed by the FDIC (or the NCUSIF for credit unions) for up to $250,000. A CD ladder -- a series of CDs with staggered maturity dates -- provides both liquidity and respectable returns. 
http://money.howstuffworks.com/personal-finance/budgeting/certificates-of-deposit.htm http://www.ehow.com/how-does_4745461_cd-account-work.html https://en.wikipedia.org/wiki/Certificate_of_deposit http://www.nolo.com/legal-encyclopedia/rebuilding-credit-cdsavings-account-secured-loans.html http://www.ehow.com/how-does_4745461_cd-account-work.html https://www.key.com/personal/resources/money-market-account-explanation.jsp http://budgeting.thenest.com/interest-work-cd-account-22651.html http://www.wikihow.com/Start-Saving-Using-a-CD-Ladder
how does a CD savings account work