If you start a 3 year cd now, can you add money to it every month during those 3 years?

Question

If you start a 3 year cd now, can you add money to it every month during those 3 years?

Answer 1

Generally not, the CD is for whatever amount you put in it up front.

Answer 2

Usually, CDs are lump-sum time deposits.  You'll have to shop around for any special deals.  Or open a money-market fund account.

Answer 3

In most circumstances when you open a CD your initial deposit is locked for the term you choose without the ability to add. However there are some banks/credit unions that have special CDs that allow you to. I know of one credit union that offers what they call a “Wealth Builder” CD that allows you add so many times during the term of the CD. The bottom line is it will depend on your bank. However, since it is CD, go for what is most important to you. If you want the ability to add, shop around for that type of CD. Just compare the rate difference. They will usually have a lower rate, even at the same term, so you must decide if the difference in return is worth it.

Hope that helped.