How old do you have to be to open a CD?

Question

I am 14 years old. I have a savings account. I would like to put some of my money in a CD. How should I ask my parents and how exactly does a CD work. Do you have to be a certain age? Are there certain requirements? What are some things i should know about interest? BTW, I'm with Chase.

Answer 1

Ask your bank about the requirements to open a CD account; from there you will know if you need to ask your parents or how you should proceed.

Answer 2

A CD can be set up as a UGMTA (uniform gifts to minors act) account for a 14-year-old.  A CD has a specific future maturity date.  You cannot withdraw the money until then without penalty.  However, the interest rate is fixed and usually higher than for a savings account.