CD Accounts Explained: Use For Strong Fixed Returns

CD Accounts Explained: Use For Strong Fixed Returns | NerdWallet

Рет қаралды 48,238

Күн бұрын

Why should you consider opening a CD? CDs, or certificate of deposit, are a good option for earning interest, especially now that interest rates have bounced back. But be mindful of the drawbacks to CDs that you should know, like penalty fees for early access. We share the pros and cons to CDs so that you are able to accurately weigh your options when considering opening a CD.
Suggested Articles:
Are CDs Worth It?: www.nerdwallet.com/article/ba...
Ask a Nerd: When and Why Should I Open a CD?: www.nerdwallet.com/article/ba...
Chapters:
0:00 - Intro
0:28 - Benefits of Opening A CD
3:13 - Downside of Certificate of Deposit
4:55 - Initial Deposit Amount for a CD
5:36 - No Penalty CD Account Explained
#NerdWallet #CD #CertificateOfDeposit
Subscribe to NerdWallet - bit.ly/3wGvVf3
About NerdWallet:
We’re NerdWallet. And we’re not your typical finance company. We believe that everyone should be able to make financial decisions with confidence. We’ve built a team of Nerds with the knowledge, passion, and skills to make that happen. Thanks to our Nerdy experts, see side-by-side comparisons and objective reviews of the best credit cards, bank accounts, and so much more - so you can get even more financial clarity. It’s the smartest decision for all your financial decisions.
Disclaimer: This video is for informational and educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities. Any comments posted under NerdWallet's official account videos are not reviewed or endorsed by NerdWallet or representatives of financial institutions affiliated with the reviewed products unless explicitly stated otherwise. Avoid disclosing personal or sensitive information such as bank accounts or phone numbers. NerdWallet employees do not offer personalized financial advice and will not respond to posts here.
Connect with NerdWallet:
Follow NerdWallet on TikTok: / nerdwallet
Follow NerdWallet on Instagram: / nerdwallet
Follow NerdWallet on Twitter: / nerdwallet
Follow NerdWallet on Facebook: / nerdwallet
NerdWallet Website: nerdwallet.com
CD Accounts Explained: Use For Strong Fixed Returns | NerdWallet
/ nerdwallet

Пікірлер: 52

@brandonmtb3767 2 ай бұрын

Just put $6000 into a 5 month CD at 4.65%. Cash was just sitting around anyways losing value from inflation. Might as well try to get that value back since I didn't need to touch that money for awhile.

@MYTMIC Ай бұрын

I did the same, figured why not

@Darkstalker212 Ай бұрын

I did it last year.. but on a smaller scale. Planning on opening up another one real soon

@bringithard6721 Күн бұрын

Could I open a 3 month every month for one year and just keep them rolling every month there after?

@Omni0404 Жыл бұрын

Ally is offering 5% APY on 18 month CDs right now

@Eli-lx2fq 6 ай бұрын

USAA is offering 5% 15 month 90 days maturity.❤

@ohigh6 8 ай бұрын

Just got a 10 month CD @ 5% from B of A, feeling it out.

@bryaninmiami Жыл бұрын

Great strategy for the risk averse like me. I started building a CD ladder with Merrill and found some nice 5% offers.

@popsncracks9108 9 ай бұрын

are you using bank of america ? if so i been looking for awhile and highest i seen was 4.89% 7 months term. thank you for help

@bryaninmiami 9 ай бұрын

@@popsncracks9108 yep. Merrill and BoA are connected.

@derekmorgan8534 Жыл бұрын

I have a few questions. I would like the same, just want ti know how or in what to invest on

@MrCharlest9 11 ай бұрын

Excellent

@derekmorgan8534 Жыл бұрын

So, a CD account is a way to give someone else your money to invest it on the market and potentially make X amount of money. Then you get some interest as payment 🤔

@AllByDesign4 10 ай бұрын

Yes. They take on the risk. You Don’t. 🎉. You earn 4-5% for your money just being there.

@stevencruz3348 2 ай бұрын

@@AllByDesign4can u lose money?

@theopoliswaters2405 Жыл бұрын

What are the tax implications of cashing in on your CD after it matures? Is the interest earned considered income?

@luceroschulz6848 7 ай бұрын

Yes

@Curious_gen 6 ай бұрын

@@luceroschulz6848can you elaborate more on this and how is it taxed?

@el-hp1lj 6 ай бұрын

TD bank is offering a 4.5-5% cd for 12-18 months. For 10-250k deposit. I was going to do it but I dont want to lock that money up so I went with there 2.5% savings product. Less gain but have the money when I need it

@MYTMIC Ай бұрын

Sounds like you just should set up an HYSA

@X-Factor-by2kz 10 ай бұрын

Do you earn the APY each month for the term of the CD? How does this work? My CU has a special offer going on now. 4.75% APY for 13 months. I'm considering putting in $500 as its the minimum.

@Omni0404 6 ай бұрын

How I've always seen it work is that those advertised APY amounts usually require you to keep your interest in the CD until it comes to term. You can choose to have the interest go somewhere else but your interest rate will be lower. Just make sure they don't have it set to auto-renew if you plan to cash it out.

@sargeatlarge24v Ай бұрын

I’m opening a cd today at 5.06% which is very high. My local bank in town offers it too which is crazy to me

@youngbucks6504 11 ай бұрын

I don’t know much about the bank all I want to know is, if I open a cd account and out my money there will it double or not !

@gigz9773 10 ай бұрын

What I plan to do is put my grandparents money into a savings acct. with high APY% (Money the bank gives you for having your money there) & open a CD acct. with a high APY%. If one doesn’t work out you have the other to fall back into.

@thecryptidarchives 3 ай бұрын

I just started a CD today with my online bank for 5.25% apy at 6 months, this is Feb 24.

@billl.2441 3 ай бұрын

Which bank? Is that 6month terms?

@thecryptidarchives 3 ай бұрын

USAA and yes for 6 months @@billl.2441

@ephraimwarrior6766 2 ай бұрын

bank name ?

@omegaman8188 Жыл бұрын

BarclaysUS is offering 5%

@JRis44 25 күн бұрын

If a cd yields 4% and inflation according to cpi is 3% then don't we account for that and simply call it 1% interest?

@dailywordnuggets8148 7 ай бұрын

Can you add to a CD without closing it ?..like deposit a monthly amount??

@mclaine33 3 ай бұрын

No the way it works is that you have to have all the money at once and it’s deposit in an account and then you can’t touch it until the maturity date. If you don’t have a bunch of cash, consider a high yield savings account. Usually they are offering around 4-4.5%

@RichardLawrenceIII 2 ай бұрын

Depends on who you bank with some banks let you add to it

@jamesparham4939 Жыл бұрын

Threw a big chunk of cash into a 3 month on Friday. Equity markets are going to be too crazy for my comfort level. June 22, I will reconsider day trading, in the meantime I am locked up for three months.

@tigerrx7 Жыл бұрын

SMH ETF is up over 20% YTD. Equities are still winning my friend

@raylopez9153 Жыл бұрын

@@tigerrx7 SMH?

@raylopez9153 Жыл бұрын

⁠@@tigerrx7 what are SMH? And ETF, I got $30,000 to invest.

@ECUCHRIS904 11 ай бұрын

Semiconductor ETF. I think you may of missed the rally though. I would look into Consumer Staples and healthcare. The CDs are nice too if you want to play it extremely safe.

@Rod-bp8ow 8 ай бұрын

Congratulations. Tierage.

@karlap2846 2 ай бұрын

Who transfer the money, the bank or myself? I open the cd on Friday but the money is still on my savings account.

@RichardLawrenceIII 2 ай бұрын

You can transfer it or they can

@lispendens 7 ай бұрын

Where can I find a beautiful nerdy finance woman like you in the real world❤

@javiercuevassanchez6446 Жыл бұрын

Can you add more money to your cd account

@GearheadK20C4 Жыл бұрын

It depends on the bank or credit union and the type of CD. I have a CD with my credit union that allows me to add money to it during maturity.

@abuwadie3 Жыл бұрын

Gonna be taxed on interest earned. So divide that interest in half. Not worth it. If your going to tie up your money then might as well do an IRA. Higher rate of return.

@mariod850 Жыл бұрын

@@abuwadie3I didn’t know it was taxed? Wow thanks for the info. I already tied my money up but only for 9 months want do it since it’s gonna be taxed

@1974dodgecharger Жыл бұрын

@@mariod850 more like 0-20%

@chingon3461 Жыл бұрын

@MR. Davis yes because it's considered income