Withdrawals before maturity are usually subject to a substantial penalty. For a five-year CD, this is often the loss … See more

The Truth in Savings Regulation DD requires that insured CDs state, at the time of account opening, the penalty for early withdrawal. It is generally accepted that these penalties cannot be revised by the depository … See more

While longer investment terms yield higher interest rates, longer-term also may result in a loss of opportunity to lock in higher interest rates in a rising-rate economy. A common mitigation strategy for this opportunit… See more

Step-Up Callable CDs are a form of CD where the interest rate increases multiple times prior to maturity of the CD. These CDs are often issued with maturities up to 15 years, with a step-up in interest happening … See more

The amount of insurance coverage varies, depending on how accounts for an individual or family are structured at the institution. The level of insurance is governed by complex FDIC and NCUA rules, avail… See more

There are many variations in the terms and conditions for CDs.
The federally required "Truth in Savings" booklet, or other disclosure document that gives the terms of the CD, must be made available b… See more

There may be some correlation between CD interest rates and inflation. For example, in one situation interest rates might be 15% and inflation 15%, and in another situation interest rates might be 2% and inflatio… See more