How to Create a Beneficiary for a Certificate of Deposit

Video Transcript

"This is financial adviser Patrick Munro talking about how to create a beneficiary designation for a certificate of deposit. Many people want to know why would I need to do such a thing? Well if you open up a certificate of deposit at a bank and the bank is holding your money after you give it to them and something happens to you, the bank needs to be able to give your money back and the interest that's accrued in the bank as well. This is your beneficiary. This is a significant person usually a bloodline relative, a child, a spouse that would receive your money in your absence usually from death. Most importantly from death. So how to create that beneficiary designation is simply to make sure there is insurable interest between you and the person that you're leaving your money too. This can also include a non-family member such as a business partner or a creditor as well. The bank will assist you in filling out the beneficiary designation for your CD. This is Patrick Munro, financial adviser, talking about how to create a beneficiary designation for a certificate of deposit."