Certificates of Deposit (CDs)

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What kinds of new CDs are available now?

There are many innovative CD investments available these days that let you meet a variety of special purposes. Some of these new types of CDs include:

  • CD Ladders
    This is not technically a type of CD, but rather a technique for managing your CD investments. You create a "ladder" of CDs by buying several CDs at once and staggering the maturity dates. Doing this gives you a number of advantages: you don’t commit all of your money to a single interest rate; you’ll have the opportunity to take advantage of prevailing interest rates on a regular basis; and a part of your money is always accessible in a relatively short period of time. Go to Dollar Bank CD Ladder
  • Variable Rate CDs
    This type of CD has a rate that can increase or decrease according to a set schedule. Some feature a "multi-step" or "bonus rate" structure. Go to Dollar Bank Rising Rate CD
  • Bump-Up CDs
    If rates rise after you’ve purchased a CD, this type of CD lets you choose to have your CD yield "bump up" to the new, higher rate. Go to Dollar Bank Bump-Up CD
  • Liquid CDs
    These are short-term CDs for people who want to earn competitive interest rates without tying up their money. Go to Dollar Bank No Penalty CD    More
  • Market Index CDs
    The interest rates of these CDs track the performance of a stock market index such as the S&P 500 or the Dow Jones Industrial Average ("the Dow"). So you can get the safety of a CD along with the performance boost of the stock market.
  • Zero Coupon CDs
    You buy these CD at a deep discount because although the interest accrues, you don’t receive any interest payments until the CD matures. At maturity, you get your entire investment, plus all the years of compounded interest, at once. This type of CD is similar to zero coupon bonds.
  • Callable CDs
    These types of CDs have a "call" feature, which means that the bank can decide to redeem (call) the CD after a specified period of time. This means that if interest rates fall, the bank may call the CD rather than continue paying you the high rate. These CDs generally start with a higher-than-market interest rate in order to compensate you for taking on the risk that the CD will be called early.
  • Inflation Index CDs
    With these CDs, you don’t have to worry about inflation lessening the value of your CD over time. The interest you receive is adjusted periodically based on the inflation rate.