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Certificates of Deposit (CDs)
Liquidity of funds is inversely related to interest earned; the longer the term, the greater the return
- guaranteed return on investment
- requires minimum deposit, amount may vary with term, interest rate
- wide variety of terms, ranging from a few months to several years
- penalties charged for early withdrawal of funds
- federally insured by National Credit Union Administration (NCUA) up to $250,000
- additional private insurance coverage from Excess Share Insurance (ESI) of up to $250,000 per member, for total coverage up to $500,000
Comparison Chart
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