To fill out a certificate of deposit form, you provide your identifying information, choose the account type and term, decide how you want interest handled, name any beneficiary, sign, and link the account you’ll fund it from. Most of the form is routine; the choices that actually matter are the term length, whether interest compounds or pays out, and whether the account is individual or joint. Get those right and the rest is data entry.
What to Have in Front of You Before You Start
Federal anti-money-laundering rules require every bank to collect four pieces of identifying information before opening any account: your full legal name, date of birth, a residential or business street address, and a taxpayer identification number (usually your Social Security number).1eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks A P.O. box will not satisfy the address requirement; the rules are written so law enforcement can reach you at a physical location, not just through the mail.2Financial Crimes Enforcement Network. Customer Identification Program Rule – Address Confidentiality Programs
You’ll also need a government-issued photo ID such as a driver’s license or passport so the bank can verify the name and date of birth you entered. If you’re not a U.S. citizen, you can use a passport number with country of issuance, an alien identification card, or another government-issued document showing nationality or residence that includes a photograph.1eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks
Have these ready too:
- The exact deposit amount. Minimums vary widely; some banks accept any amount, others require $500, $1,000, or $2,500 to open.
- A funding source. Most forms ask you to link an existing checking or savings account so the bank can pull the funds electronically.
- Beneficiary details, if you want to name one. That means the full legal name, date of birth, Social Security number, and contact information for the payable-on-death beneficiary.
The Choices the Form Asks You to Make
You can start the application on the bank’s website, through a mobile app, or by requesting a paper form at a branch. A few fields on that form are just data. The rest are decisions.
Individual or Joint Account
The form asks whether the CD is held in one name or shared. A joint CD means two or more people share ownership, which affects both who can access the funds and how much federal deposit insurance covers the account. Every joint owner will need to sign.
Term Length
You select the period your money stays locked up. Terms commonly range from three months to five years, though some banks offer terms as short as one month or as long as ten years. Longer terms generally pay higher interest rates, but they also mean your money is tied up longer and subject to a steeper penalty if you withdraw early.
Interest Rate and APY
Most applications display the interest rate and the Annual Percentage Yield (APY) for each available term. The APY reflects what you actually earn over a year once compounding is factored in. Daily compounding produces slightly more than monthly compounding on the same rate, so check which method the bank uses; it should be stated on the application or in the accompanying disclosure.
How Interest Is Paid
The form asks how you want interest handled. The two standard options are reinvesting earned interest back into the CD, where it becomes part of the principal and starts earning interest itself, or having the bank transfer interest to a linked checking or savings account monthly, quarterly, or at maturity. Reinvesting maximizes your total return. Periodic payouts give you income during the term but reduce overall earnings.
Beneficiary
If you want the balance to pass directly to someone on your death without going through probate, add a payable-on-death beneficiary using the details listed above. This is optional. Leaving it blank is a valid choice.
Signing and Submitting
Online applications accept electronic signatures through the bank’s secure platform. Paper applications need a handwritten signature in ink. On a joint account, every account holder signs. Double-check that every field is filled in before you submit; banks run applications through automated systems, and a blank field or formatting error can stall the process. Once you submit online or hand the form to a banker, you’ll typically get a reference number or confirmation screen right away.
The bank will also ask you to certify your taxpayer identification number on IRS Form W-9 when you open the CD. Filling this out accurately at the start matters: if you fail to provide a correct TIN or skip the certification, the bank may be required to withhold 24 percent of your interest as backup withholding.3Internal Revenue Service. Topic No. 307, Backup Withholding
Funding the Account
After the application is accepted, the bank moves your deposit into the new CD. The most common method is an Automated Clearing House (ACH) transfer from a linked bank account.4Consumer Financial Protection Bureau. What Is an ACH Transaction? Some banks also accept wire transfers or let you fund the CD from an existing account at the same institution, which can settle the same day.
You’ll receive a confirmation, usually by email, once the funds clear and the account is active. That message includes a summary of your deposit, the locked-in interest rate, the maturity date, and instructions for accessing statements online. If the bank spots a discrepancy during its final verification, it will contact you before the certificate is finalized.
What Your Issued Certificate Should Show
Once funding clears, the bank issues the certificate itself. Federal rules under Regulation DD (the Truth in Savings Act) dictate what the document must include.5eCFR. 12 CFR 1030.4 – Account Disclosures Check that yours lists:
- The principal amount you deposited.
- The interest rate and APY, and, for fixed-rate CDs, how long the rate stays in effect.
- The maturity date — the exact day the term ends and you can withdraw without penalty.
- A description of the early withdrawal penalty and how it’s calculated.
- The renewal policy, including whether the CD renews automatically and whether a grace period applies.
The certificate also carries your account number and routing number. Most banks deliver it as a digital PDF through online banking, and you can request a paper copy. Keep this document; you’ll need it for tax reporting and as proof of the deposit terms if any dispute arises.
Early Withdrawal Penalties
Pulling money out before maturity triggers a penalty, and it’s not trivial. The penalty is almost always expressed as a number of days or months of forfeited interest. Short-term CDs under a year typically carry penalties of 60 to 90 days of interest. Terms of one to three years often cost 90 to 180 days. Four- or five-year CDs can charge anywhere from 150 days to a full year of interest, and some five-year CDs go as high as 18 months. The exact number on your certificate is the one that governs.
One detail catches people off guard: if you withdraw early enough in the term, the penalty can eat into your principal, not just your earnings. You could get back less than you deposited. The bank is required to disclose that possibility upfront.5eCFR. 12 CFR 1030.4 – Account Disclosures
What Happens When the CD Matures
For CDs that renew automatically, and most do, the bank must send you a notice at least 30 calendar days before the maturity date, or at least 20 days before the end of the grace period if the bank offers one of at least five days.6Consumer Financial Protection Bureau. Subsequent Disclosures The notice states the maturity date, the renewal term, and the new interest rate. If the new rate hasn’t been set yet, the notice must say so and give you a phone number to call for the updated rate.
When the CD matures, you generally have a grace period, often 7 to 10 days, to decide what to do. During that window you can withdraw the balance with no penalty, change the term, or move the money elsewhere. Do nothing and the CD rolls into a new term at whatever rate the bank is currently offering. Miss the grace period and your money is locked in again for the full new term, with a fresh early withdrawal penalty if you change your mind.
If your CD doesn’t renew automatically, check the disclosure for what happens after maturity. Some banks stop accruing interest entirely once the maturity date passes, so leaving the money sitting there earns nothing.5eCFR. 12 CFR 1030.4 – Account Disclosures
Tax Reporting You Should Expect
Interest earned on a CD is taxable as ordinary income in the year it’s credited, not when you withdraw it. If the bank pays or credits you $10 or more in interest during the year, it will send you a Form 1099-INT by the end of January.7Internal Revenue Service. Instructions for Forms 1099-INT and 1099-OID For a multi-year CD, that means you may owe tax each year on interest you can’t touch without a penalty.
If you do pay an early withdrawal penalty, it’s deductible as an adjustment to gross income on Schedule 1 of Form 1040. You can take the deduction whether or not you itemize, and even if the penalty exceeds the interest earned that year. The bank reports the penalty amount in Box 2 of your 1099-INT.
One boundary worth noting on insurance: CDs at an FDIC-insured bank are protected up to $250,000 per depositor, per insured bank, for each ownership category, and CDs at a federally insured credit union get the same $250,000 limit per member through the NCUA’s Share Insurance Fund.8FDIC. Deposit Insurance At A Glance9NCUA. Share Insurance Coverage If you’re depositing more than that at one institution, the individual-versus-joint choice on the application affects how much of it is insured.