Terms vary from 7 days to 10 years. Some CDs do not allow additional deposits. Typically the funds are reinvested after the term is reached, unless you specify otherwise within a given period. Usually, there are also penalties for early withdrawal. You are usually allowed to make a specified number of transfers in a given period with no penalty.
Interest is varied but there is a guaranteed minimum.
After a certain time, the employee owns both the initial investment and the company's contribution. Some are not tax deferred. Some allow you to direct your investment. Community Service Center for the Disabled and Patricia Woelk. For information about how to order individual or bulk copies of Consumer Action publications, please see How to Order .