Wednesday, January 21, 2009

Certificate of Deposit

As a bank customer for long period of time, we became familiar with bank transactions and terms that is used in communicating with them. It is amazing that we learn things in different ways like just from simply listening to people. I had the opportunity to work for almost two years with Asian Bank before and it was a great experience being an employee of a banking business. We met people from different walks of life, others are regular clients, others are new. But there is one common thing to them…they talk about money. It is a notable feeling because most of the people talk about it. Just a reminder though, we have to be wise in spending our money.

I remember the term CDs. This is a word well used by businessmen. CD means Certificate of Deposit, a financial product commonly offered to consumers by banks or credit unions and other financial institutions which is similar to savings account because they are insured and risk free. In some way, they are different because CD has specific terms thus it is also called a time deposit. This time of year, Bank’s compete businesses by offering attractive CD Rates for various durations of time.

3 comments:

elementary-finance.com said...

Good explanations. Remember that you can ladder CDs if you don't want to commit all your money at once. I wrote an article for my blog about CDs that explains laddering. Feel free to stop by and read.

Bracing Lifes Challenges said...

Thanks

RateNerd said...

Here are some good thoughts on how to begin your CDladder investing http://ratenerd.com/certificates-of-deposit-cd-how-to-build-a-cd-ladder-432