A 9-month CD (Certificate of Deposit) is a type of savings account offered by banks and credit unions. Here are the key characteristics:
- Fixed Term: It has a maturity period of nine months, during which the deposited money is locked in.
- Interest Rate: Typically offers a fixed interest rate generally higher than regular savings accounts.
- Minimum Deposit: Often requires a minimum deposit amount to open the account.
- Early Withdrawal Penalty: If you withdraw the funds before the 9-month term ends, you usually incur a penalty, a portion of the interest earned, or a specified fee.
- FDIC Insured: In the United States, CDs from credit unions are usually insured by the National Credit Union Administration (NCUA) up to $250,000 per depositor per credit union.
A 9-month CD can be a good option if you have a specific short-term savings goal and want to earn a higher interest rate without taking on much risk.
