Can you add money to a cd

If you want to add additional money to an existing CD later on, start by reading the fine print on the agreement before you purchase the CD. The terms and conditions listed for the CD should state whether or not you can add money down the line. If you are unsure of the wording of any of the terms, contact your bank for further information. You do not have to give up investing in CDs just because your current CD does not allow you to add additional funds.

Instead, you can accumulate money and use that money to purchase additional CDs when you have enough to invest. Some banks even offer CDs with no minimum balance requirement, making it easy for you to put new money aside on an ongoing basis. An extra benefit of this strategy is that if interest rates tick up in the interim, you can get a better rate of return on the money you put into those new CDs.

This feature could be a boon for savers who only have a few hundred dollars to spare. The financial institution may restrict the total amount of cash you can add as well as the deposit frequency. You may also only be able to make deposits from certain accounts. Deposits will be able to grow at the same fixed rate as your original deposit, which is good news if interest rates drop.

However, the downside is that you would also be stuck at your initial rate if interest rates rise, according to Ford-Coates. Like all financial products, there are pros and cons that come with an add-on CD. Here are some important points you need to consider about add-on CDs. Not all financial institutions that offer traditional CDs offer add-on CDs. Before opening an add-on CD, you should compare CD rates with multiple financial institutions and consider market rates overall.

After all, the funds will be locked in that CD for a set period of time. If you anticipate needing the funds before the maturity date, then consider other savings options, such as a high-yield savings account. Once you have some savings tucked away, an add-on CD can be a practical place to store other funds. Not only will your initial savings grow, but you can add to your savings along the way.

After the CD matures , you could consider renewing it or choosing another investment account to continue growing your savings. Check out our CD calculator to see exactly how much you stand to gain by stashing your savings in a CD. How We Make Money. Written by Sarah Sharkey. Written by. Sarah Sharkey. Sarah Sharkey is a contributing writer for Bankrate.

Sarah writes about a range of subjects, including banking, savings tips, homebuying, homeownership and personal finance. Taylor Medine. Taylor Medine is a contributing writer for Bankrate. Taylor writes about banking and student loans. Edited By Mary Wisniewski. Edited by. Navy Federal Credit Union offers certificates that you can add to anytime during the term. I've had one since last May and I've added funds to it periodically over that time.

Many banks encourage customers to use a laddered approach to their CDs. That being said there are several altenative to non-flexible CDs: There are CDs that allow you to "bump up" the rate once during the life of the CD. There are ones that are linked to your direct deposit. There are some Add-On CDs allow you to add the extra money. They tend to have secondary rules for this additional money such as pegging the rate to the time remaining longer term rates are higher than short term so adding money to a 5 year CD after 4 years will not get you the higher rate.

Read the fine print. Sign up or log in Sign up using Google. Sign up using Facebook. Sign up using Email and Password. Post as a guest Name. Email Required, but never shown. Featured on Meta. Now live: A fully responsive profile. Version labels for answers.