Certificates of Deposit Jared Kaonohi
What is Certificates of Deposit (CD) • Certificates of Deposit is where the savings are entitle to receive interest. • Extra info: -issued by banks and federal credit -maturity date & fixed interest rate issued by variety value -Terms range from one month to five years
Limits to CD • Positive side: -Money maybe FDIC insured and earn more interest -long term only • Negative side: -Cannot be touch for 6 months (or how long you put it for)
Does Certificates of Deposit match you? • Certificates are perfect for investors who • want to let their money sit • not be itched to pull your money out early • Earn money: -Bank use your money to loan to other customers and buys investments -in return interested money goes back to you
Does any economic climate can affect CD? • Yes, if there is a slight change on the market or the climate; there can be affect on the banking saving account interest-rate trends. • For instance, due to fall of market and housing market the interests of the CD’s drop (for 6 months) from 1.25% (2009) to 0.50% (2012).
Local CD’s you can find? • Hickam Federal Credit Union (HFCU) Starting price $500 6 months-36 months Types: regular, jumbo, super jumbo • Hawaii USA Federal Credit Union Price: $500-25,000 6 months-5 years Types: regular, jumbo, Youth add-on
Any more secrets? • Only one risk… -PAY PENALTY IF YOU WITHDRAWAL EARLY (before the mature date) • Results:
CREDITS: • "CD Penalties - Basics, Tips, and What to Expect." About.com Banking / Loans. N.p., 2012. Web. 31 Aug. 2012. <http://banking.about.com/ od/cds/a/cdpenalty.htm>. • "Bank Savings Account Interest Rate Trends." Online Banking. N.p., 2012. Web. 01 Sept. 2012. <http://www.ally.com/savings-accounts/ interest-rates/bank-savings-account-interest-rate-trends/>. • "Savings Interest Calculator." Savings Calculator. N.p., 2012. Web. 01 Sept. 2012. <http://www.nationwide.com/savings-calculator.jsp>.