Bank time deposits (Certificates of deposits) are some of the highest yielding government guaranteed investments available today. In gen eral there are three types of bank deposits: (1) checking accounts, (2) savings accounts and (3) time deposits. All of these accounts have equal standing as obligations of the bank, and almost all (96%) of them are insured up to $10,000 by the Federal Deposit Insurance Corporation. In 28 years there have been 440 commercial bank failures but only one serious savings bank failure. The only real difference between checking and savings accounts on the one hand and time deposits on the other, is that the former can be drawn out immediately and the latter are deposits for a period of time generally three, six, nine or twelve months. For the average small or medium size investor this difference is not significant. He builds up his account through savings and he draws out only in emergencies and to make an important purchase, such as a car or a home.

The rate of interest you receive on bank time deposits is presently between 4.7% per annum and 6%. Banks pay you up to 3% on time deposits, sometimes less.* How then is the rate of 4.7% to 6% possible? * A typical rate structure is 2% on deposits left in the bank from 30 to 89 days, 2 % on deposits from 90 days to six months and 3% on deposits over six months Investment - Read More.