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Yes, you can lose principal on a certificate of deposit (CD) if you withdraw funds before the maturity date or if the bank goes out of business and is not insured by the FDIC.

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AnswerBot

5mo ago

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Related Questions

Can you lose money in a certificate of deposit (CD)?

Yes, it is possible to lose money in a certificate of deposit (CD) if you withdraw your funds before the maturity date and incur penalties or if the interest rate is lower than inflation, resulting in a decrease in purchasing power.


Can you lose money on a certificate of deposit (CD)?

Yes, it is possible to lose money on a certificate of deposit (CD) if you withdraw your funds before the maturity date and incur penalties or if the interest rate is lower than inflation, resulting in a decrease in purchasing power.


Can a trust be named as the beneficiary of a certificate of deposit (CD)?

Yes, a trust can be named as the beneficiary of a certificate of deposit (CD).


Do you pay taxes on a certificate of deposit (CD)?

Yes, interest earned on a certificate of deposit (CD) is subject to taxation as income.


What is a CD at a bank?

A CD is a certificate of deposit which is a time deposit savings with fixed terms.


What is a bank CD?

A CD refers to a Certificate of Deposit. It is a certificate given to you by a bank for depositing cash with them. They would pay you an interest for having the deposit with them.


Can you add more money to a certificate of deposit (CD)?

No, once a certificate of deposit (CD) is opened, you cannot add more money to it.


Can you add funds to a certificate of deposit (CD)?

Yes, you typically cannot add funds to a certificate of deposit (CD) once it has been opened. The initial deposit is fixed for the duration of the CD term.


Can I add money to a certificate of deposit (CD)?

Yes, you typically cannot add money to a certificate of deposit (CD) once it has been opened.


Can you get 6 on a certificate of deposit (CD)?

Yes, it is possible to get a 6 interest rate on a certificate of deposit (CD) offered by some financial institutions.


Is CD investment risky?

No. CD stands for Certificate of Deposit which is a certificate issued by a bank after they accept the deposit from you. No matter what happens, this money will be returned to you on the date of maturity/completion of this deposit.


What is the current coupon rate for a certificate of deposit (CD)?

The current coupon rate for a certificate of deposit (CD) varies depending on the bank and the terms of the CD. It is the interest rate that the bank pays to the CD holder.