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• Next, you agree to keep your money deposited for the specified length of time. For example, let’s say you deposit $5,000 in a five-year CD. You’re not allowed to withdraw the money before the five years are up without paying a penalty known as an early withdrawal fee.
• Interest is compounded daily, and is paid monthly, quarterly, semi-annually, or annually. Typically, it is paid at maturity or annually for terms of more than one year.
• You can have your interest reinvested, paid to you by check, or transferred to your checking or savings account.
• When your account matures, it automatically renews for the same term as the previous term, at the rate in effect on the maturity date.
• A “grace period” begins at maturity and ends seven calendar days later. During this grace period you may do the following without incurring a fee:
o make withdrawals (up to the full amount in the account); o change the term or balance of your account;
o make one additional deposit, and
o close the account.
Savings Bonds
As explained by the U.S. Department of the Treasury, savings bonds have been called “the All American Investment.” They are an easy way to save money safely and get a good market return. Interest rates change every May and November based on either current market rates or inflation.
There are two main types of bonds offered: the Inflation Indexed, or I Bond, and the Series EE Savings Bond.
The I Bond: The I Bond is designed to offer all Americans a way to save that protects the purchasing power of their investment by
Savings Accounts