Certificate of Deposit popular known as CD is a time deposit which is issued by Commercial Banks. This type of deposit is a secured one where the money is kept in the bank for a limited time period (mainly between 6 months to 5 years). The longer the money is kept the higher interest rate it will get.
The Certificate of Deposit is generally issued by a bank but can also be purchased from broker firms. This deposit is covered by the Federal Deposit Insurance Corp, is the amount deposited is under $250,000. If anyone wants to increase their money through a secured process, CD is one of the most beneficial one but here the money has to be kept in bank for a limited period of time which is authorized by the bank and if the money is withdrawn prior to the maturity time, then a hefty penalty is deducted, which is unlike any other savings account. In terms of interest rates also, cd interest rates hoboken nj provides better interest rates upon maturity than any other secured bank savings account.
CD interest rates in Hoboken, New Jersey
(Rates refer to change without prior notice)
|Account type||Interest rate||Annual Percentage Yield (APY)||Compounding method||Min. amount to open||Min. amount to obtain APY|
|3 month CD||0.25%||0.25%||continuous||$2500||$2500|
|6 month CD||0.35%||0.35%||Continuous||$500||$500|
|8 month CD||0.40%||0.40%||Continuous||$500||$500|
|9 month CD||0.75%||0.75%||Continuous||$500||$500|
|10 month CD||1.73%||1.75%||Continuous||$500||$500|
|12 month CD||2.62%||2.65%||Continuous||$100||$100|
|18 month CD||2.66%||2.70%||Continuous||$100||$100|
|24 month CD||2.71%||2.75%||Continuous||$100||$100|
|30 month CD||1.09%||1.10%||Continuous||$100||$100|
Various CD types to choose from:-
- Traditional CD – This is the normal CD which is issued by the bank with fixed interest rates.
- Variable-rate CD – This type of CD offers a variety of rates unlike the normal ones, and is a bit riskier.
- Bump up CD – In this type of CD, a person can “bump-up” to a greater interest rate during his period of time.
- IRA CD –IRA or Individual Retirement Account is a very low-risk certificate of deposit where a person can grow money after his retirement. Interest rates are relatively low than others.
People of hoboken, nj, gets a huge benefit from cd interest rates and this have a number of benefits as well. The risk factor of investing the money is very low as the whole process is a secured one along with high interest rate. The more the money the higher will be the returns.