The amount paid is determined by the amount and length of time it is on deposit. Interest can be paid by check, added back to the CD, or direct-deposited into your checking or savings accounts. No charge to customers. A penalty may be assessed for early withdrawal for CDs with a term of one year or less, the penalty is 90 days interest. This tax-deferred account is used by individuals with earned income as a means to save for retirement years.
Several plans are available, either with fixed or variable interest rates.
An interest-bearing account where funds are readily accessible. Interest is compounded and paid to account monthly. A variable rate, interest-bearing savings account with unlimited deposit and special withdrawal features. Available to individuals, businesses, non-profit organizations and government agencies.