Home arrow Mortgage Forums arrow Budgeting and Personal Finance arrow

Certificate of Deposit

Author Message
Icon Mini Profile Sam
Sam
Site Admin



Joined: 21 May 2005

Posts: 813
Location: CALIFORNIA
347.04 Dollars($)
Post Posted: Wed Mar 31, 2004 4:25 am    Post subject: Certificate of Deposit
Like 0
Dislike 0

Certificate of Deposit (CD) is a certificate of confirmation on savings account issued by a bank or any other financial institution. It includes the institution's promise to return the deposit, plus gains at a specific interest rate within a specified period. The bank may charge penalty on any withdrawal form this account before the maturity period.

Customers agree to lend money to the institution for certain period of time as due to a secure way of earning interest amount on the investment.

A certificate of deposit with an investment under $1,00,000 is called ''Small CD'' whereas that with an investment above $1,00,000 is known as ''Large CD'' or ''Jumbo CD''.

Related Article
J Lerman

Guest







Post Posted: Mon Jan 01, 2007 3:27 pm    Post subject:
Like 0
Dislike 0

what are callable certificate of deposits, is there any difference between them and traditional certificate of deposits
Icon Mini Profile carnahandavid
carnahandavid




Joined: 21 Dec 2006

Posts: 238

58.41 Dollars($)
Post Posted: Mon Jan 01, 2007 3:38 pm    Post subject:
Like 0
Dislike 0

Hi Lerman,

Callable Certificate of deposit is different from traditional certificate of deposit in the sense that with such CDs, the bank keeps its rights to call (buy back) the investment.

There is an initial non-callable time period, after which the bank has the right to buy back the certificate of deposit.

As these are callable they also have high interest rates. On the due call date the bank which had issued the callable CDs determines whether it will be better to replace or leave the investment outstanding.

David
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Refinance Quotes
Call for Rates
Speak to a lender now.
We will match calls to our toll free number with our network of lenders.
Highlights
Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Helpful References
34 Tax tips boost your savings
12 financial ways for Seniors
Budgeting Lesson 1
401k/403b Retirement Loan


Calculators     [View all]
Calculate Debt-Income Ratio
Calculate Retirement savings
Convert IRA to Roth IRA
Tax savings in 1031 Exchange


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.






Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.064 seconds.