Certificates of Deposit, or CDs, are a way to invest money and earn interest. You can open a CD through a bank or brokerage firm by visiting the branch and, with the assistance of a bank officer, open up a CD with your initial investment amount. Your investment sits in the account until its maturity date, which can range from six months to seven years, depending on the type of CD. Once maturity is reached, you must withdraw your money within 10 days of the maturity date or the CD is renewed automatically. Your original investment and interest earnings will be given to you in cash. Early withdrawal of your money may lead to penalties and fees.
Step 1
Visit the financial institution holding your account. Make sure you bring your documents or certificate received from the bank when you opened the account. Some banks only issue receipts. Also make sure you have proper ID to prove you are the rightful owner of the account.
Step 2
Present your documentation or receipt and identification to the bank officer. He will want to verify that your account has reached maturity and that you are entitled to the money.
Step 3
Endorse the check if payment is issued in this manner. Bank policy defines how certificates of deposit are paid at maturity.
Step 4
Sign all paperwork stating that you have received the money and that all information is correct regarding date, time and financial institution.
Tips and Warnings
- You can reinvest your money by opening another certificate of deposit account with the same financial institution once you have withdrawn from a mature account. CDs are not for long term financial goals, and you should request to have the maturity date given to you in writing so that you do not risk forfeiting your money by forgetting to withdraw.
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