Certificate of Deposit is a money-market bond redeemable without penalty only on maturity. It is a certificate that has a specific fixed rate and it can be given out in any denomination. This is usually given by commercial banks and is insured by the FDIC. In addition, this certificate of deposit is issued by banks in a form of promissory note. The term for this is covered from one month to five years. It is also a time deposit that limits the holders from withdrawing funds on demand. Generally, a penalty will incur if the holders will withdraw the money. Having a certificate of deposit is an excellent way of saving money and at the same time earning interest. Therefore, if you are planning to get a certificate of deposit, just ask your bank and you must have enough money to get one, of course. Its interest is usually compounded monthly. Moreover, if you tend to invest between $200 to $2,000, you must consider having a certificate of deposit – if you want your investment to be safe.

As we all know, Certificate of Deposits are issued by banks in any denomination and in a promissory note. Early withdrawal is subject to penalty. Certificate of Deposits are considered as time deposit ‘coz it limits the holders from withdrawing funds. When I applied my first certificate of deposit, I usually did not have a clear understanding. That is why I decided to ask one of my friend who already for a certificate of deposit before. From our discussion, I learned the steps on how to apply for a certificate of deposit, different interests, and terms. First thing, I did when I applied certificate of deposit, I just ask my bank that I want to get one. Considering that, I have enough money to be eligible. I got my certificate of deposit over the internet wherein I filled up the application form. I was instructed to input my personal information, contact number (so that they contact me), account options (wherein they can forward their response) confirm information (verifying the information I stated), and there is a “thank you” remark on the last part (message informing you had a successful transaction). After two business days, one of their representatives called me saying, I qualified of having certificate of deposit. Social Security Number and valid i.d. are also required when applying for certificate of deposit. In addition, based on my experience, you must have a certificate of deposit if you want your investment to be safe.