Common Features
November 16th, 2009
Common Features of Certificates of Deposit
FDIC Insurance on Certificates of Deposit
All Certificates of Deposit issued by credible financial institutions are FDIC insured (called FDIC insured Certificates of Deposit) up to $100,000 in principal per depositor, per issuer. Accrued interest is included when calculating insurance coverage for non- Equity Linked Certificates of Deposit.
Deposits maintained in different category of legal ownership (individual, joint, testamentary, retirement) carry separate FDIC insurance.
Secondary Market Liquidity
Unlike local bank Certificates of Deposit, you can sell your certificate of deposit before maturity at the market price without early withdrawal fees or penalties. Of course, the price you receive in the secondary market may be more or less than your original deposit, depending on market conditions at the time of sale.
No fees or commissions for purchasing Certificates of Deposit
Neither fees nor commissions are charged to investors who purchase primary issue Certificates of Deposit through banks or financial insitutions.
Certificates of Deposit are Affordable
Small initial investments of Certificates of Deposit makes them affordable. Usually a certificate of deposit requires only about $1,000 initial deposit. Additional deposits can be made in $1,000 increments.
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