With the variety of bank account deposits available for both business and personal bankers, you want to make sure you find the right account for your needs.
Where do I start?
A great starting point is understanding demand deposits vs. time deposits. Once you choose between the two, you will be well on your way toward making decisions that benefit you. If you ever have questions, our bankers at Cornerstone Bank can guide you along the way!
What is a demand deposit?
A demand deposit is any deposit you make that you can withdraw without notice is a demand deposit. In many cases, these are the type of deposits you will deal with the most; however, they often come with little to no interest. Within this category, there are three main types of demand deposits: (1) checking accounts (2) savings accounts (3) money market accounts.
Learn more about the benefits of money market accounts. →
What is a time deposit?
Whenever a bank deposit comes with a fixed rate and term, it’s considered a time deposit. With time deposits, you aren’t allowed to withdraw money for a specific period of time or you would pay a penalty to get the money out. The penalty amount varies from institution to institution, so it’s always best to speak with your bank before making assumptions.
Certificates of deposits (CDs) are examples of time deposits. CDs allow you to add money and watch it accrue interest at a higher rate than a traditional savings account. Again, the caveat is you must hold the money in place to avoid a fee. Whenever the term ends, you can either withdraw your money or renew your account for another term. So if you think you may need to withdraw funds in the near future, it may be best to deposit your money in a savings account rather than a CD.
Let Cornerstone Bank make the choice between demand deposits vs. time deposits easier than ever.
More than anything, our bankers are here to help you with any of your financial needs. Since 2001, we have been a primary resource for our customers across the Kansas City metro and the country. We take pride in watching our customers thrive, no matter who you are.
We always put our customers first, and that means giving them the best banking has to offer. We don’t believe in simple banking; rather, we go above and beyond to help our customers make their money work for them.
For more information, visit our Overland Park office or give us a call at 913-239-8100 to let us know how we can help. Also try out our new online Deposit Tool to discover which type of bank deposit best suits your needs.