As with other accounts, institutions may assess various fees on savings accounts, such as minimum balance fees. Credit Union Accounts Credit unions offer accounts that are similar to accounts at other depository institutions, but have different names. Time deposits are often called certificates of deposits, or CD's. They usually offer a guaranteed rate of interest for a specified term, such as one year. Institutions offer CDs that allow you to choose the length of time, or term , that your money is on deposit.
Terms can range from several days to several years.
Once you have chosen the term you want, the institution will generally require that you keep your money in the account until the term ends, that is, until maturity . Because you agree to leave your funds for a specified period, the institution may pay you a higher rate of interest than it would for a savings or other account. Typically, the longer term, the higher the annual percentage yield. Sometimes an institution allows you to withdraw your principal funds before maturity, but a penalty is frequently charged. Penalties vary among institutions, and they can be hefty.