Key facts
- The bank was required to hold the CD for a limited time.
- Experts advise on preventing lost funds.
A woman discovered a long-lost certificate of deposit (CD) valued at $25,000, but the bank no longer has a record of the funds. The bank was reportedly required to hold the CD for only a limited time. Experts are providing guidance on how individuals can avoid similar situations with their financial assets. Certificates of deposit offer guaranteed returns without market risk, with current competitive rates for a one-year CD potentially earning over $1,000 in interest on a $25,000 deposit. For instance, at a 4.25% APY, a $25,000 investment could yield approximately $1,062 in interest over one year. In contrast, CDs at major banks might offer rates as low as 0.05% APY, resulting in minimal earnings. CDs are insured by the FDIC or NCUA up to $250,000 per depositor, per institution, and their fixed rates offer predictable growth, making them suitable for short-term savings goals.