Certificates of Deposit

One of the safest possible investment choices you can make.  A Certificate of Deposit (CD) is an ideal tool for earning a good rate of interest while incurring virtually no risk. Because every portfolio should contain some cash (many experts say about 20%), CDs can be a good way to keep those essential dollars safe while they earn interest. Minimum deposit to open a fixed-rate CD is $1000.  Open your Certificate of Deposit today.

  • CD Terms Available - 182 Days to 60 Months

  • Minimum Opening Deposit - $1,000

  • Early Withdrawal Penalty may apply

How a Certificate of Deposit Works

When you purchase a CD, usually in amounts of $1000 or more, you must agree to leave your funds on deposit for a predetermined amount of time. It is likely that you will get a higher interest rate by making a longer time commitment, so if you think current interest rates are favorable, it is probably wise to choose a longer duration CD to lock them in. 

If current rates seem low to you, you might decide to invest for a shorter period, hoping that there will be an interest rate hike soon. 

In shopping for rates, keep in mind that the way interest is compounded is crucial in determining what your annual percentage yield (the amount you earn, as a percentage of what you have invested) will be. Look for CDs that pay compounding interest not simple interest. Compounding interest means that each time your CD earns interest, that money is added to your principal and begins earning interest as well.

Best Features of a Certificate of Deposit

Your funds are insured, up to the maximum extent allowed by law. You generally will earn more than you would in other types of savings accounts. You pay no sales charges or broker fees. Once you are locked into a CD, whatever happens in the economy, including interest rate drops, will not affect you. 

But Remember

If interest rates rise, your money is still locked in at the lower rate. If you need to gain access to your money before your CD comes due, you may pay an early withdrawal penalty. CD interest is taxable.