What is a certificate of deposit?
A certificate of deposit, also called a CD, is a type of savings certificate. A client deposits a certain amount of funds with a bank for a fixed period, usually from one to five years although longer terms are possible, and in return is guaranteed a locked interest rate which is higher than that of a traditional savings account. For people who want non-risky methods of investment with guaranteed returns, such as the elderly, youth wanting to set money aside, or people with limited funds, a certificate of deposit is an excellent investment alternative, because when the certificate of deposit is held by an Federal Deposit Insurance Corporation (FDIC) insured bank and is for less than $100,000 US Dollars (USD), the client will never lose his or her money. A certificate of deposit can take a wide variety of forms which are negotiable with the issuing bank. If it is under $100,000 USD, it is known as a “small CD,” while deposits over that amount are called “jumbo CDs.” A jumbo CD is somewh
A Certificate of Deposit (CD) is a savings certificate that entitles the holder to receipt of interest. CDs tend to offer higher interest rates than traditional savings accounts because the holder commits to a fixed rate for a set term. Capital One offers CDs in terms from 6 months to 10 years with a minimum investment of $5,000. No fees to open or maintain your account As long as you don’t withdraw money before the term of the CD expires, you won’t pay any fees. FDIC insured to at least $250,000 per depositor You know your money is safe with us. The Federal Deposit Insurance Corporation (FDIC) now provides insurance on deposits in Capital One Bank (USA), N.A. and Capital One, N.A., to at least $250,000 per depositor, per ownership category. This increase to $250,000 is currently approved until December 31, 2009. For example: Individual and joint accounts are insured separately. This means that if you have both an individual and joint account in each of our institutions, your total dep
