How long does it take to open a CD?
Since CD rates have become quite generous over the past few months, many people have decided to open a certificate of deposit. And I was part of that trend.
Over the past six months I’ve opened a few different CDs. And most of the process went smoothly.
However, in some cases it may take some time to open the CD. Therefore, it is important to know what to expect.
This is the most time-consuming research.
Opening a CD isn’t something you should jump into. The interest rates offered by each bank are different. This can take anywhere from a few minutes to an hour or more, so it’s a good idea to research your options.
It was helpful to keep the terminology in mind when looking at new CDs. For example, I recently decided to deposit a 60-month CD, so I knew I would only have to compare interest rates at different banks for that specific period.
And if you’re curious, the reason I chose the 5-year CD is because I think the Fed will start cutting interest rates this year. The reason I think that is because the Fed basically said so.
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If that happens, CD prices will likely drop. So I wanted to get a good deal for a relatively long period of time while I could.
Currently, it may take a few minutes for your bank to open your CD.
One of the CDs I opened recently took less than 5 minutes. But the reason is that I have already opened other accounts, such as savings and checking accounts, at that institution.
However, while setting up an actual CD took very little time, once the account was opened, you had to take a few extra steps to designate a beneficiary. It took longer.
The CD I opened was a CD I made together with my husband. We wanted our three children listed as beneficiaries on the account. In order to do this, since I couldn’t remember each person’s resident registration number, I had to dig up each person and enter additional information. So the process took about 15 minutes. It’s not terrible, but it’s a step worth taking the time to do.
It may take longer to open a CD at your new bank
While researching long-term CDs, the best rates I found were at banks I didn’t yet have an account with. But the process took much longer. It took almost 30 minutes. Not only did I have to enter more financial information (since my old bank didn’t have any), but I also had to wait for another verification code to arrive in my email to complete the process. safety.
To be fair, this experience may have been specific to the specific bank I worked for. You may find that opening a CD at a new bank is a faster process. But for me, there was a noticeable time difference compared to opening a CD at an institution I already banked with.
Ultimately, you may need to spend some time researching CD rates. In fact, the opening process may be faster. But these days, there are many CDs that pay higher interest than deposits. So, if you have money that you can lock away for a period of time, it might be a good idea to make the effort.
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