Certificate of Deposits aka CDs

Good evening Dolls,

Happy Monday late night to you all!  I hope you had a fabulous weekend!   This was a very rewarding one for me.  I had the opportunity to be inducted into my church guild.  Basically I am part of the committee that oversees the church events, mini bible study etc….I was honored to be chosen because truthfully, God has been amazing to me.  This is my way of giving back 🙂 I’m humbled.

Last week I mentioned a topic to discuss if I didn’t receive one via email or through a post on here.  One of the Dolls asked me about CDs, so I will discuss those this week.

Certificate of deposit – Aka CD is a savings account that is offered by financial institutions.  The money is locked in for a specified period of time.  You, as the owner, can choose to put your money away for 6 months, 1 year, 5 years, etc…  When your time has expired, the bank will send you a letter letting you know you can either leave the money there for the same period of time you previously had (also known as letting it roll over) OR you can change it and withdraw the funds.

Minimum –  With CDs, there is usually a minimum to start.  The common dollar amount is $500 for personal (individual) CDs.  Business CDs usually start off with a higher requirement and banks can require an amount other than $500 to begin.

Taxes – When CDs earn at least $10 in interest you will have to pay taxes on it.  This, of course doesn’t help matters any when you aren’t earning that much money to begin with.

Safe – If you want something that is safe, FDIC insured by the financial institution AND won’t access the money for a lengthy period of time, the CD might be for you!

Thank you again, to the Doll that submitted the topic for this week.

If I don’t receive any topics here or via email, then I will talk about Kapernick and Nike 🙂  You can email me at :thefinancialcomforter@gmail.com or you can post here.

Thank you and have a blessed week,

Marsha

Changing the lives in our community….one family at a time

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