Bank Of America CD Rates – A certificate of deposit (CD) is a type of low-risk savings account that can boost the amount you earn in interest in exchange for keeping your money deposited for a set amount of time. In this case, the depositor would be loaning the amount to the bank for some time.
Bank Of America CD Rates
1. Featured CDs:
- Description: These CDs offer higher interest rates for specific terms and may be available for a limited time.
- Minimum Deposit: $1,000
- Interest Rates: Rates can reach up to 3.80% Annual Percentage Yield (APY) for certain terms.
2. Fixed Term CDs:
- Description: Provides flexible terms ranging from one month to 10 years, allowing customers to choose a duration that aligns with their savings goals.
- Minimum Deposit: $1,000
- Interest Rates: Rates vary depending on the selected term and deposit amount. bankofamerica.com
3. Flexible (No-Penalty) CDs:
- Description: Allows for early withdrawal of funds without incurring a penalty, offering more accessibility to your money.
- Minimum Deposit: $1,000
- Interest Rates: Generally lower than Fixed Term CDs; specific rates depend on the term and deposit amount.
Bank of America CD Accounts
Bank of America offers CD accounts as a type of investment.CD account is a type of account that holds the money for a certain period during which it pays interest to the deposit holder.
Interest Payment Options
The interest is paid either monthly, quarterly or annually. At the end of the said period, the depositor is given an option of either renewing the deposit for another time or closing the account and taking the money out. The CDs earn an interest that is higher than the savings bank accounts.
Higher Interest Rates and Compound Interest
The CDs earn compound interest, meaning the interest accruing is also added to the principal amount for the interest calculation.
CD Terms and Early Withdrawal Fees
CDs are available for various periods and principal amounts. If the depositor wants to close the deposit before the stipulated period, he has to pay an early withdrawal fee, which is calculated based on the remaining number of days before the deposit’s maturity.
Annual Percentage Yield (APY)
The yearly interest includes API, the Annual Percentage Yield – that is the interest earned in one year.
CD Laddering Strategy
CD Ladder is the way by which you invest in CDS for a long period while being able to withdraw a sum regularly.
Factors to Consider When Investing in CDs
While investing in CDs, it is important to note the offered rates of interest and the possibility of the rates to change shortly.
Bank of America CD Rates is that, unlike the stock market or coin-trading, etc., market fluctuations will not affect the final yield of the CDs, thus making it a safe and predictable investment.
