How to Start Using CDs

Contact your bank or credit union if you choose to open a CD with your local financial institution. Most banks will explain your options and allow you to make CD investments online. You also can call customer service or speak with a banker in person.

Explain how much you’d like to invest and ask about early withdrawal penalties and alternative CD products. The bank might have additional CD options that are a better fit for you. They might offer higher rates, more flexibility, or other features.

You’ll see a separate account on your statements or online dashboard after you move your money into a CD.

CDs may be held in almost any type of account, including individual retirement accounts (IRAs), joint accounts, trusts, and custodial accounts.

Just be sure to stick with CDs insured through the Federal Deposit Insurance Corp. or the National Credit Union Administration. Don’t be afraid to ask your banker for a better rate, especially if you do significant business with that bank or credit union

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