A Business Time Account (CD) is an option for businesses looking to plan for the future by earning a fixed interest rate for a specific length of time.
Monthly service fee: None
Minimum opening deposit: $2,500
Wells Fargo's Business Time Account, also known as a CD, is designed for business owners with cash reserves that can be held for a specified length of time. It offers fixed interest rates with flexible terms, along with the security of FDIC insurance.
A CD is a financial product that usually pays a fixed interest rate for a set period of time, ranging from a few months to several years. This period of time is known as a “term". By depositing your money into a CD for a set term, you lock in your initial deposit principal and interest rate until your money matures.
You earn interest from the date of your opening deposit up to your maturity date. Your interest compounds daily and is generally paid monthly, although interest payments made quarterly, semi-annually, annually, or at maturity are also available. Interest can be re-deposited to the CD, transferred to a Wells Fargo checking or savings account, or paid to you via check if your CD has a minimum balance of $5,000.
There are a number of reasons you may want to open a CD:
You can withdraw your funds early if you need to, but you may be assessed an early withdrawal penalty or a Regulation penalty.
Approximately one month before your CD matures, you’ll be sent a notice reminding you of the maturity date. At maturity, you'll have a seven calendar day grace period to renew or make any of the following changes:
CDs renew automatically at maturity. Interest will not be paid during the grace period if you withdraw your funds and do not reinvest your CD.