All Topics > Services > Certificate of Deposits >

Certificate of Deposits Washington

An overview of Certificate of Deposits, including interest rates, types of CD’s, and terms and conditions associated with CD’s.

1. Local Companies

2. Overview

3. Step One: Buying a CD

4. Step Two: Paying Interest

5. Featured Local Company

1 . Local Companies

Hanson Law Office
509-773-5515
111 N Grant St
Goldendale, WA

Rick L. Hansen - Attorney at Law
509-773-3787
110 W. Allyn St
Goldendale, WA

City of Goldendale Crime Prevention Line
509-773-7847
1103 S Columbus
Goldendale, WA

Goldendale Community Library
509-773-4487
131 W. Burgen St
Goldendale, WA

Goldendale Fire Department
509-773-4240
225 W. Court St
Goldendale, WA

Goldendale Police Department
509-773-3780
1103 South Columbus
Goldendale, WA

Public Works
509-773-3771
1103 S. Columbus
Goldendale, WA

Klickitat County CASA/GAL
509-773-2498
131 W. Court, MSCH-16
Goldendale, WA

Klickitat County Ecomonic Development Department
509-773-7060 800-785-1718
127 W Court St MS-CH-27
Goldendale, WA

Klickitat County Parks & Recreation District
509-773-0506
401 N. King St
Goldendale, WA

Certificate of Deposits, or CD’s, are also known as time deposits. Similar to savings accounts, CD’s are offered by banks, thrift shops, and financial institutions as a way for a depository to ensure that his/her money will be saved and collect interest for a given amount of time, hence the name “time deposit.”

CD’s can last for a given amount of time. Most are valued for either three months, six months, or one to five years. Once the CD has matured, you are able to take your money and the accumulated interest, and close the account. Often, people use CD’s to save money for things like houses, cars, retirement, and college educations.

Why would someone trust a bank with an amount of money used for such a wanted item? The answer is simple: CD’s are completely insured by the Federal Deposit Insurance Corporation, the FDIC, or the National Credit Union Administration, the NCUA, depending on whether or not you use a bank or credit union. That means that your money will not be lost if anything were to happen to the market or the bank itself.

Because of the large amount of money placed in CD’s, interest is usually higher because the money is not as readily available as it would be with a savings, checking, or any other type of account. Although the interest is significant, it is usually a fixed rate. Additionally, interest rates are usually defined by a set of guidelines:

1. The larger the principal, the larger the interest rate.
2. Depending on the credit, a longer term may or may not have a high interest rate.
3. Smaller financial institutions usually offer larger interest rates and vice versa.
4. Personal CD’s usually acquire higher interest than business CD’s
5. Uninsured banks and credit unions offer higher interest rates.

Now that you know about CD’s and their accompanying interest rates, let’s explore how you should go about the process of buying and maintaining your own CD.

3 . Step One: Buying a CD

As with most accounts, CD’s require a specific amount of money for instatement. However, unlike most other accounts, CD’s usually require a substantial amount of money. In the United States, the largest of all CD’s is called a “Jumbo CD.” Typically, these require $100,000 for opening. However, if you’re looking into this type, be careful. The FDIC only insures up to $95,000.

As with other accounts, there are different types of CD’s that may or may not apply to your specific needs. To better understand which CD is right for you, read below.

1. Callable CD’s

A callable CD is one that is similar to a traditional CD, but is mandated by the institution. Depending on risk level associated with this type of CD, a bank can determine if the CD is worth having or if it poses a risk to the institution. Because banks make money by selling these, you should make sure that, if you use this type of CD, your money is not at risk.

2. Brokered CD’s

A brokered CD is a CD that has been negotiated by a brokerage firm. Often, brokers are better informed about the market, and can negotiate a higher interest rate for your CD, as well as bringing more money to the institution.

Unlike a personal CD, a brokered CD is usually held by many other investors who each own a piece of the investment. Also like a traditional CD, brokers can withdraw money or resell the CD before it matures without fear of penalty.

4 . Step Two: Paying Interest

After purchasing a CD, a depository will receive a paper certificate also known as a passbook. This will show the periodic bank statements of the CD. Additionally, when scheduling interest payments, a depository can arrange for the funds to be taken from other accounts, or mailed to him/her. While some institutions allow the interest to be compounded into one, or a few large payments, most advise on smaller, lighter ones that can be managed through other accounts or through the mail.

5 . Featured Local Company

Hanson Law Office

509-773-5515
111 N Grant St
Goldendale, WA

Read more about Certificate of Deposits

- FDIC Washington

The FDIC provides bank account insurance to banks in the United States of America. Government officials created the FDIC after a mass failure on the part of banks to protect the money of individuals in the general public and to restore public appeal for banking institutions.

- Nest Eggs Washington
- Lease Security Deposits Washington
- Certificates Of Deposits Washington
- Commercial Checking Washington
- Choosing a bank account Washington
- Savings Account Washington
- Money Market Funds Washington
- Business Bank Accounts Washington
- Retirement Accounts Washington

Regional Articles

- Business Bank Accounts Washington

A business bank account is used for business operations and managing cash related to your business.

- Savings Account Washington
- Lease Security Deposits Washington
- Certificates Of Deposits Washington
- Retirement Accounts Washington
- Choosing a bank account Washington
- FDIC Washington
- Money Market Funds Washington
- Commercial Checking Washington
- Nest Eggs Washington

Related Local Events

Legislative Affairs Committee
Dates: 12/3/2009 - 12/3/2009
Location: Edward Jones office
Silverdale, WA
View Details

Legislative Committee Meeting
Dates: 12/4/2009 - 12/4/2009
Location: Thurston County Chamber
Olympia, WA
View Details

Cowlitz Habitat Family Support Team Meeting
Dates: 12/8/2009 - 12/8/2009
Location: CCHFH (Upstairs) Office
Longview, WA
View Details

Legislative Committee Meeting
Dates: 1/6/2010 - 1/6/2010
Location: Thurston County Chamber
Olympia, WA
View Details

Legislative Affairs Committee
Dates: 1/7/2010 - 1/7/2010
Location: Edward Jones office
Silverdale, WA
View Details

Certificate of Deposits Washington

1 . Local Companies

2 . Overview

3 . Step One: Buying a CD

4 . Step Two: Paying Interest

5 . Featured Local Company