- Most savings accounts require the depositor to maintain a minimum balance, ranging from $5 or more, that can be withdrawn only by submitting advance written notice to close the account.
- Certificates of deposit can be purchased from a traditional bank or a credit union, in varying amounts, for a fixed period of time. The money will not be available to the depositor until the time has expired.
- Holiday accounts, often referred to as Christmas Club accounts, are a special type of fixed deposit. Money can be added as often as the depositor wants, but no withdrawals are allowed without penalty until the maturity date.
- Generally, interest and principal are paid on fixed deposits at the end of the fixed time period only, and funds cannot be withdrawn on demand. Some accounts such as the SIU Credit Union holiday account pay interest quarterly.
- In most cases, a penalty is incurred if withdrawals are made before the fixed time period is over. In some cases, the account will stop accruing interest and other times a fee will be charged to the account.
- All fixed deposits at banks are insured by the Federal Deposit Insurance Corp. for up to $250,000. Likewise, all fixed deposits at a credit union are insured by National Credit Union Share Insurance Fund for up to the same amount.
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