Im trying to sort of “lock in” my money so im not tempted to use it.
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Certificate of deposit
The fee for early withdrawal is 10% plus tax, so you won’t be tempted to do it.
Yes a CD or certificate of depost. requires that your money stay in the bank until a predetermined maturity date. The benefit is that CDs typically pay higher interest than general savings account.
If you withdraw early you will be charged a penalty. Check into that before you sign!
Lets say you have a 5 year CD (it can be as low as 3 months). If at the end of those 5 years you don’t want to take the money out you can simply renew the CD for another length of time.
Yup…
CDs…Certificate of Deposit.
This is how they work
You put in a certain amount and get a return of interest. They are locked in for 6 months to a year or more.
Ex. Put in $1k into a 6 month CD at an annual rate of 3%
You cannot touch it until 6 months are over at which point you will have $1,015
Yup…rates are not great now!
yeah, CDs (certificates of deposit) typically pay a higher rate than even the highest savings accounts do. you should be able to get 2.5-3% APY.
there are penalties for early withdrawals, and you can get them for different amounts of time – 6 months, a year etc.
CD’s
There is a penalty if you do try to withdraw before the term is up.
try CDs. I remember learning about them and I think you get interest on them or something. haha ask your bank