Best Financial Advisors in Vacaville, CA

No, we are not a bank. Some consider us CD (Certificate of Deposit) brokers. However, in reality we provide rate research and roadmaps for the placement process for CD investing. We call banks and credit unions across the country looking for the best and highest CD rates. We only work with federally insured banks (FDIC) and credit unions (NCUA). We provide you the information you need to open the CD at those institutions. You send them the funds and they send you a confirmation and the interest payments.

The APR is the Annual Percentage Rate or simple interest rate. It assumes the interest will be paid out on a monthly basis. The APY is the Annual Percentage Yield or compounded yield. It assumes the interest is invested back into the CD and then also earns interest. Not all banks will allow the interest to compound. Banks that do, will either compound daily, monthly, quarterly, or semi-annually.

The best way to send your funds is by secure Fed wire. The funds will be credited to your account the same day you wire and you will begin to earn interest. Some banks will accept checks if you prefer, but you will lose a day of interest for every day the check is in the mail. Furthermore, unless the rate is guaranteed until receipt, the interest rate could decrease.

A Certificate of Deposit can be redeemed early, but the penalty may be substantial. The early withdrawal penalty (EWP) is determined by the institution accepting the deposit. Usually, the penalty will be in days. We provide a CD Early Withdrawal Penalty Calculator that shows the effective net rate of after early withdrawal.

The interest you earn from CDs is considered taxable income by the IRS. The institution that holds your CD will send you a Form 1099-INT listing the interest income from the CD. This is true for banks and credit unions.