Finance Monies Blog

  Can Certificate of Deposit (CDs) Go Down in Value? Generally, a CD doesn't lose its value. CDs are savings products, widely considered secure and low-risk investments.  Opening a CD account  is an attractive option for conservative investors and savers, who want to earn a fixed rate of returns on deposit money.  Most CDs are insured. CDs issued by banks as banking products are federally insured by the  Federal Deposit Insurance Corp. (FDIC) , and CDs issued by credit unions are insured by the National Credit Union Administration (NCUA) in case of failure of the financial institutions that issue the CDs.  [ 1 ] However, like financial products, CDs are not entirely risk-free. While It isn't common, there are certain situations where you could lose money. Several  financial products are considered non-deposit investments and aren't insured by the FDIC : investments in  Stocks , Bonds, Mutual Funds, Crypto Assets, Life Insurance Policies,...

CD Ladder Key Takeaways on CD Ladder: A CD ladder is a goal-oriented investing approach that reduces the temptation to withdraw funds prematurely. It gives you more frequent access to your funds without locking up your funds for years while at high rates of returns. When a CD in a CD ladder matures, you can reinvest it to build a CD ladder or cash it out. Building a CD ladder deals with the multiple CD terms customization and managing liquidity focusing on long-term goals. Diversify your CD investments institutionally to avail the FDIC insurance limit. The benefits of CD ladders include improving liquidity and earning a higher rate of returns by investing in short-term CDs and reinvesting in long-term CDs if rates are to increase. What Is a CD Ladder? A  certificate of deposit (CD)  is a time deposit way to earn fixed interest securely, offered by banks and credit unions. Unlike savings accounts, a CD account comes with unique features, as there is a penalty on early withdrawa...

Types of Specialty CDs: Choosing the Perfect Fit for You A certificate of deposit (CD) is an account used to save money for earning fixed or variable rates or annual percentage yield (APY) over a specific period of time known as a term, offered by banks, credit unions, and brokerage firms, providing a business opportunity for savers to invest with CDs .  Online banking has revolutionized the traditional concept of CD. Now, it is more than merely a standard CD and comes with different choices: avoiding early withdrawal penalty fees, adding contributions to the CD account after the initial deposit, and asking the financial institutions (the CD issuers) to increase rates according to the economic wind.  You may need to shop around the other banks as your bank might hold a different fit CD than you chose.  We need to understand the other types of specialty CDs and how they work . It will help you choose the perfect fit for  achieving financial freedom  over time ho...

Add-On Certificate of Deposit (Add-On CD): What It Is, Pros and Cons, Examples An Add-on certificate of deposit (Add-on CD) is an interest-bearing special type certificate of deposit (CD) that allows the account holder to add further deposits after parking the initial deposit funds.   A regular CD doesn't allow additional deposit flexibility through the maturity period. Add-on CD Key Takeaways for Jumbo CD: An Add-on CD allows you to add money to a certificate of deposit (CD) account. An Add-on CD provides a guaranteed rate of returns, with a low minimum deposit requirement. A limited number of financial institutions offer add-on CDs in the market . What's an Add-on CD? A certificate of deposit is a savings account that earns fixed earnings, is a risk-free investment, and is federally insured. It accepts one-time deposits during the CD's maturity period and disallows additional deposits. All investments come from savings .  However, an Add-on CD gets exceptions to it. Th...

Jumbo Certificate of Deposit (Jumbo CD): Meaning, Pros and Cons Jumbo certificate of deposit (Jumbo CD) is a savings account designed for targeting high-net-worth savers or investors. It offers a way to lock in funds earning high yields. A jumbo CD provides a secure and preferable choice to grow your savings. For institutional investors, it offers decent CD rates for larger balances. Jumbo certificate of deposit (Jumbo CD) Key Takeaways for Jumbo CD: A certificate of deposit (CD) is a specific time deposit savings account limiting the withdrawal option until maturity. A jumbo CD certificate is cognate to a conventional CD. However, it comes up with larger amounts as an opening balance such as $100,000. Large companies use Jumbo CD's large investment funds as collateral for securing loan deals. Federal Reserve continues to increase rates to spring high inflation. What is a Jumbo CD Certificate? A certificate of deposit (CD) provides fixed or variable rates, and secures returns pred...