What is the minimum deposit for a CD?

A standard CD has a minimum opening deposit that can range from $0 to $10,000. CDs with much higher minimums, such as $100,000, are typically called jumbo CDs. Be mindful that the $250,000 federally insured limit applies, and choose how much to put into CDs based on your savings goals.

How much is a 1 year CD worth?

So if you open a $10,000, 1-year CD with a 2.25% annual percentage yield, after a year, your account would be worth $10,225—assuming you keep interest payments in the account. Not a penny more or less. Is a CD for you? It depends—just like that baseball card collection, there are pros and cons of CDs.

What is a standard CD?

1. Standard CD: The regular box A standard CD has five basic features: a fixed interest rate, a fixed term, a minimum deposit, an early withdrawal penalty and federal deposit insurance. Banks and credit unions offer CDs with a variety of interest rates and terms, typically from three months to five years.

What is a CD savings account?

A CD is a type of savings account with a fixed time period and interest rate. CDs tend to have higher rates than regular savings accounts but don’t allow access to your money until a term ends. Consider a CD to have guaranteed returns without much risk and to have a safe place for savings earmarked for future use. CD definition: What is a CD?