Number of young cd buyers increasing

Financial Network Investment Corporation Advisor Barbara Janis has pointed out that there are new markets on the rise when it comes to certificates of deposit: those aged 18-25. For the past five years, there has been an increase in the figures of the age group getting certificates of deposit. From October last year until September of this year, Janis has put the figure at a 35% increase. She adds that this may be due to the larger, ongoing recognition of the importance of exercising financial responsibility—regardless of the credit in one’s account or the age of the owner—in times of economic recession.

With this, Janis writes more about how CDs work for the younger targets. She is of the opinion that should people have the needed simplicity and clarity in their knowledge of how CDs work, there will be much more increase in the number of CD buyers in the 18-25 age bracket.

She also adds that at least, the younger targets realize the purpose of a CD which is to deter the client or customer from withdrawing any amount of money until the time limit for the bank keeping the amount expires. Janis says that the idea of maturity or the time where withdrawals can already be made is something that the young targets may be interested enough—a way that they deem appropriate in taking steps to maximize savings. She says that policies on clients or customers withdrawing before the maturity in which banks can have their penalties upon their respective CD accounts also enforce discipline in the young targets.

With this, Janis advises younger targets who might be interested in DCs to first check the internet for the best CD rates. She says that Researching before opening your CD account will surely be helpful. Best of all, customers or clients will find out more about how CDs work when they have finally opened an account in any of their preferred banks, Marquand stresses.

Finally, Janis advises targets aged 18-25 years old to drop by their preferred banks to express interest in the CD rates of their choice. The buyers should also provide the basic but all important data requirements, proof of identification, and must prepare to fill out forms.

Since the banks usually transfer you money from existing regular accounts to your newly opened CD account. This is where Janis tells that you plan out your own terms and conditions for your bank arrangement.