Thursday, December 8, 2011

Is there a bank account out there that I can make deposits into, but won't allow me to withdraw from?

Just as the question states, is there some kind of bank account out there that I can have that will allow for as many deposits as I want, but won't allow for a withdrawal for a certain amount of time (example: for a year's time)?|||Although there are many accounts that discourage you from withdrawing funds, it's still your money so you could still withdraw albeit with a penalty. Nothing replaces having the discipline to not screw yourself.|||The closest thing I know of is a CD. CD stands for Certificate of Deposit and it is a special type of account offered by banks. It is like a savings account in that your money is safe and there is a higher interest rate than a checking account. Also, when you open it, you agree to a fixed term. That means you can open a CD with 5% interest and a 1-year fixed term, and you can't (or really shouldn't) touch the money for a year. At then end of that time, you can take the money out again or renew the CD. If you take the money out, you'll have $105.

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