Once a certificate of deposit is opened, additional funds cannot typically be added to the balance during the CD term. The initial deposit made at the time of account opening represents the total amount that will earn interest until the CD matures. However, some banks offer flexible or "add-on" CDs that allow individuals to make additional deposits to the CD during the term, but these are less common. ●Is it FDIC Insured? Yes, certificates of deposit offered by FDIC-insured banks are generally FDIC insured. The Federal Deposit Insurance Corporation (FDIC) insures deposits in participating banks up to $250,000 per depositor, per bank, for each account ownership category. This means that if the bank fails, the depositor's funds, including the funds in a CD, are protected up to the insured limit. ●Can you write checks/pay bills directly from this account? No, you cannot typically write checks or pay bills directly from a certificate of deposit. CDs are not designed for day-to-day transactions but rather for long-term savings. They are intended to be held until maturity, at which point the funds, along with the accrued interest, can be withdrawn or reinvested. If funds from a CD are needed before the maturity date, early withdrawal is usually possible but may incur a penalty. ●Is money stuck for a set time? Yes, money deposited in a certificate of deposit is typically locked in for a set time, known as the CD term. The CD term can range from a few months to several years, depending on the specific CD chosen. Withdrawing funds before the CD matures usually results in a penalty, which can be a percentage of the interest earned or a specified number of months' interest. However, there are also flexible CDs available that allow early withdrawal with reduced interest penalties, but these options may offer lower interest rates compared to traditional CDs. Money Market Account: ●Describe this account: A money market account is a type of interest-bearing deposit account offered by banks and credit unions. It combines features of both a savings account and a checking account, providing individuals with a flexible and accessible way to earn interest on their deposited funds while maintaining some level of liquidity. Money market accounts are designed to provide a safe and secure place to store money, allowing account holders to easily deposit and withdraw funds as needed. ●Does it typically have an interest rate?
