Types of Fixed Deposits

[Mathew]

How many types of fixed deposits are available in the USA? Out of all the types, which bank offers the best fixed deposit facility in terms of competitive interest rates and flexibility?

[Mark]

In the US, fixed deposits are called Certificates of Deposit (CD). There are 5 main types of CDs offered by the banks. These are:

1. Traditional CDs: They have a fixed term length and interest rate.
2. High-Yield CDs: They offer higher interest rates than traditional CDs.
3. No-Penalty CDs: Allows early withdrawal with any penalties for a certain period.
4. Bump-Up CDs: Allows the customer to request a one-time increase in the interest rate if market rates rise.
5. Jumbo CDs: A significant deposit, usually $100,000 or more, is required to access the higher interest rates of these CDs.

There are many banks that provide highly competitive CD rates:

1. Capital One 360
2. Ally Bank
3. Marcus by Goldman Sachs
4. Credit Unions

You can select any bank and open a fixed amount there; all the banks provide good interest rates on fixed deposits.