BANKING AFFAIRS

Detailed explanation-1: -The tenor of a CD at issuance shall not be less than seven days and shall not exceed one year.

Detailed explanation-2: -A three month CD account is an agreement between the investor and the financial institution to invest funds into a CD account for a 3 month (90 day) period. 3 month cds can be a great way to earn interest on funds safely, without restricting the funds for a long period of time.

Detailed explanation-3: -At most banks and credit unions, a three-month term is the shortest duration certificate they offer, while some don’t offer any CDs shorter than six months.

Detailed explanation-4: -A three-year CD is a deposit account in which you agree to keep the money in the account for three years. Yields on three-year CDs are often higher than money market account and savings account yields. Bankrate’s calculator can help you determine how much interest you could earn when your CD matures.