The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.

Certificates of deposit (CDs) are a popular savings product for those who are looking for a guaranteed return on their money. CDs offer competitive interest rates that remain fixed for the CD's term.

Many banks and credit unions charge fees for opening and maintaining CD accounts. These include early withdrawal fees, monthly maintenance fees, or broker fees. Fortunately, you can avoid most of these fees.

Before opening a CD account, make sure you understand all its terms and conditions. Get all the details about the account to avoid any surprises later on. Then consider CD terms. One of the most common CD fees is the early withdrawal penalty. When you take funds out of your CD account before the maturity date, many CDs charge a fee equal to several months' interest. To avoid this penalty, choose the term that fits your savings goal and timeline. Thus, if you think you may need the funds, consider CDs with shorter terms.

However, some banks offer no-penalty CDs or CDs with no fees. Such CDs are designed to allow account holders some flexibility. With these CDs, you can withdraw your funds before the maturity date without incurring any financial penalties. While this unique feature provides more liquidity and accessibility to your money, the interest rate can be slightly lower. Plus, some no-fee CDs may have high minimum balance requirements or other restrictions.

If you have a good relationship with your bank, you can try negotiating with them to waive CD fees. Many banks are willing to do so, especially if you have a substantial deposit or are a long-time customer. It never hurts to ask.

tags : Fees Money Management Certificate of deposit

Disclaimer: This editorial content is not provided or commissioned by the banks or credit card issuer(s). Opinions expressed here are the author's alone, not those of the banks or credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the banks or credit card issuer(s). Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult with the issuing bank of the card or account for terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are accurate as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.