BANKING AFFAIRS

Detailed explanation-1: -Time deposits generally pay a slightly higher rate of interest than a regular savings account. The longer the time to maturity, the higher the interest payment will be. Another name for this type of investment is term deposit.

Detailed explanation-2: -CDs generally pay more interest than traditional savings accounts and the annual percentage yield (APY) is fixed. In a rising-rate environment, it’s smart to build a CD ladder so that all your money isn’t locked up at a lower rate as yields rise. Opening a CD account usually requires a minimum deposit.

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: -They have some of the highest interest rates available for federally insured bank accounts, and the rate is guaranteed for the duration of the CD term. Here’s a look at some of the highest CD rates on the market. So far, the Federal Reserve has continued to raise rates in 2023, which is good news for your bank account.

Detailed explanation-5: -Higher Rates Compared to savings accounts or money market accounts, CDs potentially can offer higher interest rates on deposits. That’s because you agree to keep your money in the CD for a set time period. The interest rate and APY you earn depends on the bank, the CD term and the current interest rate environment.