What is a Certificate of Deposit (CD)?
A Certificate of Deposit is a deposit account that you can open through a bank, credit union, or an online financial institution. A CD allows you to hold money for a specific amount of time while that money earns interest.
So, it’s a little different than your standard savings account, because with a CD, you generally won’t withdraw any money until the CD matures.
The annual percentage yield (APY) for CDs is usually fixed, meaning you earn the same rate throughout the CD term.
Once a CD matures, you can withdraw the money you saved, along with all your interest earned. You can also opt for your savings to automatically roll into a new CD.
Here are 3 benefits to opening a Certificate of Deposit:
1. CDs have varying maturity dates
If you have upcoming, important life events, like college tuition for your child, or saving up for purchasing your dream home, a CD is a great option for you to place your money for a time that’s in alignment with your life events.
2. Any-time additional deposits to maximize your savings
With our CDs, you can add money at any time. This gives you the freedom to add money when it’s financially convenient for you.
The minimum is $1,000 per deposit and additions are allowed up to 100% of the CD’s original balance each term.
3. Higher interest rates
CD’s will often have higher interest rates than a savings or money market account, because you’re agreeing to keep the money in the CD for a certain amount of time.
By the way… Our CD rates are now higher than ever! Check out our Interest Rates page for more options.
For more information, call us at 1-800-344-7048 or visit our Certificate of Deposit page.
Interest Rates Effective Since August 10, 2022.