How would I go about with getting a CD with my local bank?
Answer:
1. Go to your bank personally or go to their website. Look up for their CD products.
2. Inquire about the types of CD products they have and the minimum amounts required. Ask for the rates for each type. Bank of America for example has a Risk Free CD and a High Yield CD http://www.bankofamerica.com/deposits/ch.
3. Check the APY rates on CDs
4. Ask about the fees -- monthly maintenance fee, minimum average daily balance to avoid the monthly maintenance fee
5. Apply for the product you want
The previous answer is as accurate as I could suggest as well.however, I would also add this with "Step 1: Visiting your bank:" First, make sure the amount of money you wish to put into a CD is money you do not need or anticipate needing in the near future. Although you can get CDs for terms as few as 3 months up to 12 years, make sure you are comfortable with not having access to that money for at least whatever length of time you choose. You can withdraw from the CD early, usually with a 3 month interest penalty (meaning the amount of interest you would have earned in three months will be taken out of the money you have in the CD,) but this can often defeat the purpose of the CD in the first place.
Also, keep your options open. Sometimes you can find a savings account with just as much interest as a CD. Granted, this can fluxuate, unlike a CD for the term you open it for, if it goes down too much, then you can take out your money, penalty-free, and open a CD! In other words, talk to a banker and see what's out there before nailing down a decision on a CD.
Beware: If you walk into a bank and say "I want to open a CD," there are a number of average-performing bankers who will just open the CD for you. Go in and tell them, "I have $5000 and I want to make as much return on it as possible. What do you have?" If they do not work for you or seem uninterested.LEAVE. Find another banker to help you. There are people who really want to look out for you; don't settle for less.
Good luck!
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