Certificates of Deposit (CDs) are similar to savings accounts in that they are insured and thus virtually risk-free; they are “money in the bank” (CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks or 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 three months, six months, or one to five years), and, usually, a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.
Dividends are compounded and credited quarterly.
For accounts opened at a minimum of $1000:
