CERTIFICATE

OF DEPOSITS
What is a Certificate
of Deposit?
• Common financial product that were sold by the bank having a fixed
money for fixed period of time.
• It is a kind of savings product that earn interest on a lump sum for a fixed
period of time.
• Customer usually buy a CD in order to gain/ earn interest rate while
keeping their money safe and untouch.
• CD is considered as insured, safely kept and is said to be risk free.
 What are the
characteristic of
Certificate of Deposit?
Interest rate - they provide a clear and predictable return in
your deposit.
Term - length time were the top prioritize it helps you earn high
rate and avoid you from penalty.The term ends on maturity date.
Principal - the amount you deposit in able to buy a CD.
Institution - the bank or credit union where you open your CD.
 4 Main Types of
Certificates of Deposit
1. Fixed-Rate Certificates
-the most popular type of CD.
- offers fixed interest rate for the entire term of the CD.
2.Variable Certificates Of Deposit
- offer an interest rate that can change over the life of the CD.
3. Bump-Up Certificates
-offer a fixed interest rate for the first few years of the CD and then allow
you to “bump up” the interest rate once during the life of the CD.
4. Liquid Certificates Of Deposit (No-Penalty CDs)
- similar to regular CDs, but they allow you to withdraw your money early
without penalty.
How to Open a CD
Account?
1. Choose a type of CD.

2. Compare interest rates, terms and fees.

3. Apply for the CD.

4. Fund your CD.

- To buy a CD, customer deposit their money for a long period of
time: month up to 5 years.

Longest time period earned highest interest rate.

CD is complete when said to be matured: notify the customer offering

them the option to the money with interest term or reinvest the money
for another period of time.
Advantages of a CD Disadvantages of a CD
Account Account

•Higher Interest Rates Than •No Liquidity

a Savings Account •Early Withdrawal Penalty
•Guaranteed Rate of Return •Lower Earning Ability
•Funds Likely Federally
Insured
 How Terms,
Minimum Balances,
and Rates interact?
CDs come in varying terms and may require different minimum balances.
The rate you earn typically varies by the term and how much money is in the
account.
How does Certificate
of Deposit Work?
In exchange for depositing your money into a bank for
a fixed period (usually called the term or duration), the
bank pays a fixed interest rate that’s typically higher
than the rates offered on savings accounts.
Group 3 Members
Aborde, Juan
Aguilar, Herbert
Cleland, Riri
De Los Santos, Eduard
Garduque, John Michael
Inandan, Chauncy Ivan
Mirando, Hernan Jr.
Moreno, James Maeko
Romero, John Karl
Unas, Andre
Thank you!