BANKING AFFAIRS

Detailed explanation-1: -Usually, a CD is understood as a kind of savings account that offers a higher interest rate than an ordinary savings account. Although this edge over savings accounts comes at the cost of a lack of liquidity.

Detailed explanation-2: -Generally, certificates of deposit have the highest interest rate and savings accounts the lowest. Some companies declare and pay dividends to their shareholders.

Detailed explanation-3: -Fixed Deposits (FD) are investment instruments offered by banks and non-banking financial companies, where one can deposit money for a higher rate of interest than savings accounts. These deposits, hence, offer the highest rate of interest, ranging from 4 to 7.

Detailed explanation-4: -Best CD rates of February 2023 Marcus by Goldman Sachs: 6 months – 6 years, 3.70% APY – 4.75% APY; $500 minimum deposit to open. Capital One: 6 months – 5 years, 3.30% APY – 4.30% APY; no minimum deposit needed to open. Synchrony Bank: 3 months – 5 years, 2.25% APY – 4.60% APY; no minimum deposit needed to open.

Detailed explanation-5: -A CD, or certificate of deposit, is a type of savings account with a fixed interest rate that’s usually higher than a regular savings account. It also has a fixed term length and a fixed date of withdrawal, known as the maturity date. You lock funds in a CD for a term generally ranging from three months to five years.