Finance Monies Blog

How Does a CD Account Work? A certificate of deposit (CD) account is a financially safe, sound, and reliable saving option available for depositors and conservative investors, offered by banks and credit unions. When you open a certificate of deposit CD, you lock your money in an account for a specific period (say 06 months, 1 year, or more) and avoid early withdrawal penalties.[ 1 ]. Unlike standard savings accounts, CDs provide a guaranteed return and you can earn higher interest rates than a regular savings account.  CD accounts work best for a reliable growth-earning process for wealth accumulation and financial freedom; they are recommended as one of the  best money-saving tips for better financial health .  How Does a CD Account Work If you plan to achieve a specific goal through savings such as a new house purchase, or a new car, you might put some of your savings into CD accounts.  CD accounts are federally insured by  Federal Deposit Insurance Corporat...

National Credit Union Administration (NCUA):  An Overview What is the National Credit Administration (NCUA)? The National Credit Union Administration (NCUA) is an independent agency, backed by  the United States federal government. The federal government created the  NCUA to insure  the deposits and supervise and regulate the federal credit unions.  The vision of the NCUA is to provide financial safety, supervise a safe, sound evolving  credit union system, and underpin communities. Understanding the National Credit Administration (NCUA)?      History and Responsibilities At first in 1934, the NCUA was established as the Burea of  Federal Credit Unions (BFCU). The BFCU was renamed the National Credit Union Administration (NCUA), and reorganized by the US Congress in March 1970. Finally, in 1978, it was established as an independent agency of the US Federal Government.            Key Points: NCUA is an ...

Federal Deposit Insurance Corp. (FDIC): Definition & Controls What Is the Federal Deposit Insurance Corp. (FDIC)? The Federal Deposit Insurance Corp.(FDIC) is an independent agency of the federal  government. FDIC was created under the Banking Act of 1933, supplying deposit insurance  in case of bank failures.   Federal Deposit Insurance Corp. (FDIC) The purpose of FDIC creation was to supervise financial institutions and maintain financial  stability, and public confidence in the sound banking system of the nation.[ 1 ]. As of April  2024, FDIC insures deposits to at least $250,000 per depositor per ownership category at  each bank that remains FDIC-insured. This insurance coverage maintains stability and  consumer confidence in the U.S. financial system.[ 2 ].  Without deposit insurance, bank failures could cause panic. Due to a lack of confidence,  urgent money withdrawals from other banks could jeopardize the banking system. Bank ...

How to open a certificate of deposit (CD): 5 Simple Steps A certificate of Deposit (CD) offers a guaranteed rate of returns and is insured by the federal government. So, opening a CD account is just like opening a savings account.   It is your personal finance behavior that guides you to prefer opening a CD account instead of investing in stocks , savings accounts, or bonds.  Personal finance and your behavior are deeply interwoven. open a certificate of deposit (CD) account Many banks, credit unions brokerage, and brokerage firms open CD accounts and provide personalized services to their clients.       Key Points: A certificate of deposit (CD) offers a guaranteed rate of returns and is insured by the federal government. FDIC and NCUA insurance protect $250,000 per person per institution. CDs provide fixed and variable interest rates, and banks or credit unions use the federal reserve rate as a benchmark to offer rates to their customers. So, if you...

What is a Certificate of Deposit (CD) and How It Can Help You Save? Certificates of deposits (CDs) are savings accounts where you agree to keep money in for a specified time and avoid early withdrawal penalties. Certificate of Deposit -CD       FinanceMonies's Key Takeaways:   A certificate of deposit (CD) ensures regular returns and is considered a safe investment over the agreed period. CD is considered a safe investment option for conservative investors who do not like volatile stock market securities like stocks and bonds. Every bank, credit union, and brokerage firm offers competitive CD options. Unlike saving accounts, CDs charge financial penalties for premature CDs-early withdrawal penalty (EWP).      ★ What Is a Certificate of Deposit (CD)?      A certificate of deposit (CD) is a low-risk savings tool that banks and credit unions maintain. CDs are insured by Federal Insurance Corporations for up to $ 250,000.  It offer...