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Certificates of Deposit
A Certificate of Deposit (often called a CD) is a type of
savings account with a fixed rate and fixed maturity. That
means that the interest rate on the money deposited is guaranteed,
as long as the money remains in the bank for the time shown
on the certificate. There is an interest penalty if
all or part of the deposited money is withdrawn before the
maturity date.
Features
This is an FDIC insured deposit. Checks may not be
written against this account. The interest rate is fixed
for the term of the certificate. Certificates may be
automatically renewed at maturity. The interest rates
paid vary by maturity and may be found on the current rate
sheet. Interest earned on this account is subject to
income tax and the bank issues a yearly IRS form 1099. The
depositor must supply the bank with a taxpayer identification
number (social security number).
Rates
Certificate rates are found on the current rate sheet.
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