Anyone that has ever saved money to reach a goal can tell you that it's difficult without proper planning. Perhaps a change in strategy is all you need, which brings us to the topic of certificates of deposit. If you haven't considered utilizing a CD to save money, it might be in your best interest to do so. Robert Jain, in addition to other authorities on finance, can tell you that it offers numerous advantages to even the most frugal individuals. Here are a few questions and answers that will provide more insight into CDs in general.
"What is a certificate of deposit defined as?" Simply put, this is a savings account that's meant to keep money for a specific length of time. Someone may want to keep it active for only a few months, while another individual may want to keep it active for several years. Whatever the case may be, this account is locked in at a fixed interest rate, which is perhaps its most defining trait. Reputable names in finance like Bob Jain will be able to agree.
"What do I need to open a CD account?" First, you need a minimum amount of money to open an account in the first place. Depending on what you're saving for, as well as the type of account you're looking to open, you may need anywhere from $1,000 to $100,000 to start. Furthermore, you'll need a solid credit score to open an account with your bank. The better your score, the more likely it is that you'll be approved.
"Is there a penalty for withdrawing money early?" If you open a CD account, understand that you will be penalized for taking money out earlier than expected. The specific amount you'll owe will depend on how much you save, too. You'll most likely to have to consult your bank to learn more, as the amount in question can change based on the establishment you have an account with. Needless to say, it's recommended that you leave the money alone until it's time to withdraw it.
"I'm still not sold on opening a CD; are there other resources out there?" Perhaps the best way to receive immediate insight is by calling your bank. By speaking to a representative, you'll have better insight as to what they offer as far as CD accounts are concerned. You can learn on your own time as well by going online, either by reading articles or looking over statistics. By taking the time to absorb information, you'll have that much better of an understanding as to what CDs are all about.
"What is a certificate of deposit defined as?" Simply put, this is a savings account that's meant to keep money for a specific length of time. Someone may want to keep it active for only a few months, while another individual may want to keep it active for several years. Whatever the case may be, this account is locked in at a fixed interest rate, which is perhaps its most defining trait. Reputable names in finance like Bob Jain will be able to agree.
"What do I need to open a CD account?" First, you need a minimum amount of money to open an account in the first place. Depending on what you're saving for, as well as the type of account you're looking to open, you may need anywhere from $1,000 to $100,000 to start. Furthermore, you'll need a solid credit score to open an account with your bank. The better your score, the more likely it is that you'll be approved.
"Is there a penalty for withdrawing money early?" If you open a CD account, understand that you will be penalized for taking money out earlier than expected. The specific amount you'll owe will depend on how much you save, too. You'll most likely to have to consult your bank to learn more, as the amount in question can change based on the establishment you have an account with. Needless to say, it's recommended that you leave the money alone until it's time to withdraw it.
"I'm still not sold on opening a CD; are there other resources out there?" Perhaps the best way to receive immediate insight is by calling your bank. By speaking to a representative, you'll have better insight as to what they offer as far as CD accounts are concerned. You can learn on your own time as well by going online, either by reading articles or looking over statistics. By taking the time to absorb information, you'll have that much better of an understanding as to what CDs are all about.
About the Author:
Kindly contact Bobby Jain for further information regarding what you have just read.
No comments:
Post a Comment