Terms can either be described in months or years. Terms can run for any period of time but in general, banks use the following terms:ģ months, 6 months, 12 months, 18 months, 24 months, 36 months, 48 months, and 60 months. The time period in which money is held in a certificate of deposit is called the term. Interest penalties and is generally not advised.
While it is possible to withdraw the money earlier (breaking the CD) doing so comes with high
Of money for a set period of time, in return for a fixed rate of interest. Certificates of Deposit - Branch Banks 2023Ī certificate of deposit (CD) is a savings product offered by a bank in which a depositor (someone who has money to put into the bank) agrees to commit a certain amount
