A popular time deposit is a CD account. Time deposits are deposits with a time component, i.e. the deposit must be untouched for a fixed time period in exchange for the interest. Because you’re agreeing to "no touching" with time deposits, they come with higher interest rates than more liquid deposits, like checking and savings accounts. The longer the term, the higher the interest rate will be.
If you touch your deposit and withdraw early, you’ll have to pay a pretty penalty fee to get it out. Also, like regular ol' bank accounts, time deposits are typically FDIC (Federal Deposit Insurance Corporation)-insured, in the U.S. at least...up to $250k per investment. For credit unions, CDs are NCUA (National Credit Union Administration)-insured.
Time deposits are great for people looking for a safe place to park their cash, with better returns than a bank account. Of course, that comes at the loss of potentially higher returns made elsewhere, like on the stock market. Time’s a-ticking, so you'd better decide what to do with that cash.
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Finance: What is a Savings Bond?2 Views
finance a la Shmoop what is a savings bond well it's kind of like charity
charity because interest rates on savings bonds are exceptionally low even
by government standards well there was an era in America when taxpayers happily
and willingly loaned money to Uncle Sam and were happy to do so because they had
great faith and trust that the people we elected were in fact decent honest [old government photos]
hard-working representatives who had the interests of the nation placed far ahead
of their own personal gain it was the era of Jimmy Stewart and a whole bunch [photo of Jimmy Stewart]
of others you should think the greatest generation yeah we know even a pretty [picture of John Wayne]
good generation check Congress for details so savings bonds used to be a
standard birthday present for young people kind of like the cross pin that [kid's birthday party]
nice Jewish boys would get at their bar mitzvahs grandmother's after slathering [boy's mar mitzvah]
in a bathtub of angry perfume loved handing the $50 savings bond envelope to [woman in hot bath]
their college-bound progeny well savings bonds are issued by the US
Treasury and have no stated maturity date instead what happens is that the
savings bond welljust pays the interest for some
period of time like say a decade and at the end of that 10 years while it simply
stops paying interest you can cash in the bond at that time or just let it
ride essentially renting money to the Gov for free and yeah you don't want to
confuse a savings bond with this bond yeah who needs no safety
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