Certificates of Deposit (CDs)
The Basics
Certificates of Deposit, which are commonly called CDs, are a type of savings
account for which you can receive a higher interest rate than you would typically
receive on money deposited into a traditional savings account. In exchange for a higher interest rate, financial institutions require you to leave your money in your account for a specific period of time, usually for as little as 3 months, or sometimes for as long as 5 years.
The Benefits of Traditional CDs
- CDs are FDIC-insured (up to $100,000)
- CDs have fixed interest rates
- CDs can typically offer higher interest rates than many other savings accounts
- CDs have predictable rates of return that are easy to calculate
The Benefits of Our CD Offering
- CDs are FDIC-insured (coverage up to $5,000,000 available)
- CDs have fixed interest rates
- CDs can typically offer higher interest rates than many other savings accounts
- CDs have predictable rates of return that are easy to calculate
What to Consider
- CDs have early withdrawal penalties
- CDs do not allow balance transfers
- CDs do not allow checks to be written against the account
- CDs may pay a higher interest rate if you agree to a longer term
- CDs require a minimum deposit to open an account