YOUR FINANCIAL QUESTIONS ANSWERED
LEARN MORE. LIVE MORE.
Can a Certificate of Deposit lose my money?
A Certificate of Deposit (CD) offers a relatively high interest rate on funds that account holders have restricted access to. Account holders do not typically lose money with a traditional CD unless they withdraw funds and therefore miss out on future interest payments.
Like other saving accounts, the Federal Deposit Insurance Corporation and National Credit Union Administration insures CDs if the financial institution were to fail.
While CDs are a low-risk investment option, it’s important to thoroughly understand the terms before opening an account. Most banks and credit unions provide public information about the CD options available. Education Credit Union, which serves Amarillo, Bushland and Canyon, Texas, lists specific details on their website about the CDs they offer.