A bank certificate of deposit, or CD, is a way that you can earn interest on your money, typically at a higher rate than a savings account. The interest that you earn on a CD will depend on how long you leave your money in the bank. You don't need an actual certificate to purchase a CD; you can buy bank CDs online.
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Difficulty:
Easy
Instructions
1
Find a bank that allows you to buy a CD online. Many popular banking facilities, including Bank of America, have online tools that allow you to buy your CD online instead of visiting a bank in person (see Resources).
2
Choose the type of CD account you wish to open. For instance, a high yield CD account will likely require you to deposit a few thousand dollars. Each online CD account type has a different set interest rate.
3
Select the terms of the CD you buy online. Length of CD accounts will usually range anywhere from less than 1 month to 10 years. The longer you leave the money in the CD, the bigger return you will see.
4
Apply for a CD account. You will need to give the bank your financial details online in order to be permitted to buy a CD. Provide your social security number, source of income, occupation and contact information.
5
Wait for approval. Online approval for an account will take less than 5 minutes. Once approved, you can make an online deposit in order to open your CD. To buy the CD, you will then transfer money from another bank account to your new CD account to complete the transaction. You can manage your CD through the bank's online banking tools.
Tips & Warnings
Make sure you use a bank that has a secure online connection. Look for the padlock symbol on the web page when entering any sensitive financial information.
Despite increasing advances in online distribution, buying CDs (compact discs) remains a viable way of building a musical collection. CDs capture and...
