What is a Certificate of Deposit Assessment Rate?
A certificate of deposit assessment rate is a way to keep track of your deposits. It is a way to lock your money up so that you will be able to achieve a higher interest rate than with a simple savings account.
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Certificate of Deposit
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The certificate of deposit allows you to save money at a higher interest rate, but you are unable to get this money until a set amount of time has passed. Withdrawing the money before this set date would cause you to lose the interest and principal that you could make.
Assessment
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The certificate of deposit has a set assessment rate depending on how long you want to take it out for. The longer the duration, the higher the assessment rate becomes.
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Idea
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The assessment rate is basically the interest rate. The amount of interest you get will be the assessment rate that your certificate of deposit brings in.
Determination
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Assessment rates are determined by the bank or creditor that you take the certificate of deposit out with. Most assessment rates range the same for the amount of money, but they do differ a little with where you will be taking it out and keeping it.
Insured
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Every CD is insured by the FDIC. They can be insured up to $100,000. If it is a retirement account, the FDIC will insure it up to $250,000.
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