There are three types of time deposit products provided by Bank of America: preferential time deposit, standard time deposit and CDIRA (individual retirement savings account) time deposit. The characteristics of these time deposit products are relatively high returns, but customers are required to deposit according to the agreed time and amount, and cannot withdraw early during the deposit period.
Bank of America Time Deposit Products
- Preferential Time Deposit
Preferential Time Deposit is a time deposit called "Merit Rewards" provided by Bank of America. Customers can enjoy higher interest rates as long as they choose the automatic transfer function when opening an account and specify to deposit at least $25 per month. The deposit period ranges from 7 days to 5 years, and the minimum deposit amount is $1,000.
- Standard Time Deposit
The deposit period of standard time deposit ranges from 7 days to 10 years, and the minimum deposit amount is $1,000. The deposit interest rate depends on the deposit period and deposit amount. The longer the deposit period, the higher the interest rate.
- CDIRA Time Deposit
CDIRA Time Deposit is a regular savings product provided by Bank of America for retired customers. Customers can choose different deposit terms, including 3 months, 6 months, 1 year, 18 months, 2 years, 3 years, 5 years and 10 years. The minimum deposit amount is $1,000.
Interest rates and risks of US bank time deposits
The interest rate of US bank time deposits is relatively high, which is related to the deposit period and deposit amount. The interest rate is usually higher than that of ordinary savings accounts, but funds cannot be withdrawn at will during the deposit period. In addition, due to the insurance coverage of the US Federal Treasury Insurance Corporation (FDIC), customers' deposit funds can be guaranteed up to $250,000, so there is a certain level of risk.
