The payable on death CD option (POD CD), or transfer on death, is a good choice for those who would like to specifically designate a beneficiary for their certificate of deposit account. The payable on death option is very common for CDs, but many people still have questions as matters relating to death and inheritance can sometimes be confusing. We’ve put together this quick guide to help you understand everything you need to know about the payable on death CD.
Payable on Death CD Basics
Many people will put aside money, often into CDs, in order to benefit another person when they die. The payable-on-death CD option is pretty much what you think it is. When you buy a CD, you have the option to stipulate that the CD be payable on your death. That means that the ownership of the CD will automatically transfer to the beneficiary.
The POD CD option is a common one, but its details can vary from state to state. Before you get a CD with the payable on death CD option, be sure to consult with a financial advisor if you have any further questions.
More Payable on Death CD Reading
If you didn’t find the answer you’re looking for, here are some other articles that will answer your questions.
Renewing CD as a Beneficiary
Interested in renewing the CD you recently inherited? Here’s how to do it the right way.
Paying Taxes as a CD Beneficiary
Find out more about the taxes you may need to pay after inheriting a certificate of deposit.
Will Beneficiary vs. CD Beneficiary
Are you wondering who the courts would side with between a will beneficiary and a CD beneficiary? Find out here.
Choosing a Certificate of Deposit Beneficiary
You may be at the point where you need to choose your own CD beneficiary. Here are some suggestions for choosing a beneficiary for your CD account.