Finance Monies Blog

  What Is a Promotional Certificate of Deposit (CD) Rate A promotional  certificate of deposit (CD)  rate offers an attractive opportunity to  earn higher returns  than a traditional certificate of deposit (CD), which requires higher minimum requirements when opening the new CD. The promotional  CD rate is also known as the bonus CD rate. It is a financial product offered by banks and credit unions, available for a limited period to retain and encourage existing clients to deposit more funds and induce new clients.  Understanding how promotional CD rates work and how they compare to regular CDs helps you make smarter financial decisions fit for  your financial goals .  Promotional CDs Key Takeaways: Promotional CDs are time-sensitive, and provide a compelling opportunity to secure a promised rate of returns on your savings which is higher than a regular CD for the same terms. Promotional CDs cease promotional rates as their maturity ends and ...

  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,...