cd rates

Certificate of deposit or CD is generally offered by various banks, theft societies and other finance companies to the customers as a time deposit. They are similar to savings bank account but still there is a difference between a savings bank account and a certificate of deposit (CD). It is often mistaken by people as CDs that is Compact Disc. The difference is certificate of deposit will have specific, fixed term and fixed rate of interest called cd rates. But there are certain rules and regulations that have to be followed. The main thing of all is money can be withdrawn only after a certain period of time which will be mentioned by the company offering the certificate of deposit. Personal certificate of deposit accounts will get higher interests than a business certificate of deposit accounts. To start a certificate of deposit account usually a small amount is enough but large amounts will get higher rate of interests. If the money is withdrawn before the time mentioned by the company then it may lead to penalty. But these cd rates can closely track inflation. Some of the other similar products are callable cds, brokered cds, bump up cds, liquid cds, step up cds or step down cds, variable rate cds, add on cds, zero coupon cds etc. The institution may specify a grace period before automatically rolling over the CD to a new CD at maturity.