How to Open a Certificate of Deposit

Video Transcript

"So how to open a certificate of deposit, or CD. A couple of ways, first of all the most common would be to go to a bank that you use and look for the best rates. A lot of banks just have them posted out in the lobby, you can also inquire with people in the bank and find out what they are offering. And to do that you basically just write a check or transfer money from an internal account to them, and they will put that in the certificate of deposit and that will start your next course. The other way is to go to a brokerage institution where they will have CDs, many times similar to what the bank has, and they will also many times have CDs that they are actually trading on the market. Because certificate of deposits do actually have a market, they are traded. So you may or may not find a better deal at a brokerage or a bank, but those really are your two options. And it's really a matter of just going in, inquiring what's available, and giving them the minimum amount or more that they need to open up that account. And actually there is another option where you can do this more independently, it will actually be through a brokerage or a bank, but you can go online, and you may actually find on the internet a CD offer where you can actually do it from the comfort of your home. And you won't have to go to a bank or a brokerage office, but you will actually be working with a bank or a brokerage. It will just be through the internet, and the convenience of doing it from your home."