Rates Current as of Friday February 10, 2012

« My mom has a certificate of deposit that is coming due in a few weeks, but I can’t find her paperwork for it. Does the bank require the original certificate or documents to redeem the CD and the accrued interest?

Can you still deposit cash directly into your bank account or open up a CD with cash? »

The bank where I have my CDs says that interest on the CD account is compounding daily. If the interest earned from the CD is paid monthly, how can they say they are compounding it daily?

When your bank states it compounds the interest daily on a CD but it pays out that interest monthly, it is engaging in a fairly standard process. The bank calculates your interest each day on the CD and simply processes that amount as a computer entry without actually paying that interest out. The next day, the bank calculates the interest earned on the CD along with the interest already accrued and calculates a new balance of accrued interest. At the end of each interest month, the bank takes the amount accrued and actually adds it to the balance in your account.

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