| CD
FAQs
What is a Certificate of Deposit
(CD)?
How much money do I need to invest in
a CD?
Is my money safe in a CD?
What happens when my CD matures?
How is my CD interest calculated?
What is APY?
How do I change my term at maturity?
What is the grace period of my certificate
of deposit?
Q: What is
a Certificate of Deposit (CD)?
A: A CD is a special type of deposit account
that offers a higher rate of interest than a regular
savings account. It offers great flexibility because
you determine the amount to be deposited and the maturity
date.
Q: How much money do I need
to invest in a CD?
A: At First South Bank, a minimum of $500 is
required to open a CD.
Q: Is my money safe in a CD?
A: CDs are one of the safest investments you can make
because your interest is insured by the FDIC (up to
$100,000).
Q: What happens when my CD
matures?
A: We will notify you when your CD is about to mature.
You will then have seven days to change your term or
withdraw your CD funds without penalty. If you choose
not to make any changes, your CD automatically renews
for the same term at the current interest rate.
Q: How is my CD interest calculated?
A: The rate on your CD is divided by the number
of days in the calendar year and multiplied by your
CD balance on a daily basis. This is called daily compounding.
Q: What is
APY?
A: APY stands for the annual percentage yield.
This is a percentage rate reflecting the total amount
of interest paid on the account, based on the interest
rate and the frequency of compounding for a 365- or
366-day period. The period depends on the actual number
of days in a year.
Q: How do I change my term at maturity?
A: If you wish to change the term of your CD,
you may call your Local Branch and we will make the
change for you. Changes can only be made at maturity,
not during the term of the CD.
Q: What is the grace period
of my certificate of deposit?
A: The grace periods of certificates vary with
the terms.
- A certificate with a term of 7 to 29 days
has a grace period of 5 days.
- A certificate with a term of 30 days to 5
years has a grace period of 7 days.
- The grace period begins with the maturity
date.
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For more information on Personal Finance Options, click
here to send us your questions, or contact us at
1-800-946-4178.
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