Are you looking for a way to invest some of your savings to earn more money?

A CD could be right for you.

CDs differ from a regular savings account because they are timed deposits. With a CD, you can select from a variety of options and agree to leave your money in the CD for a fixed amount of time. During that period - which can range from a few months to a few years - your money will earn interest and keep growing until your CD reaches maturity.

At maturity, you’ll have the option to let your CD automatically renew for a new term, using the money to open a new CD for a different amount of time, or move the money to one of your other accounts.

It’s also good to know that your money is federally insured to the maximum allowable limits.

The amount you put into a CD should be money you likely won’t have to withdraw until the term ends. Often, the longer the term you choose, the higher your interest rate will be, and the more you can earn on your investment.

We want you to know that you can remove your money before the investment term ends, but also to be aware that there is an early withdrawal penalty.

CDs can be a sound way to save for future needs without putting your money in other risky investments that don’t offer this type of guaranteed return  which could actually lose value during difficult times.

There are many situations where saving with a CD may be beneficial. Here are a few: 

  • Saving a downpayment: You have saved your down payment on a house but you don't plan to start looking until later this year. This is a good time to put the funds into a 91 day CD to gain higher interest on the amount and still have the funds available when its time to make the purchase. You can do this for any type of down payment you have been saving, such as, for a boat, car, RV, etc.
  • Saving for your dream vacation: You’ve saved a lump sum and plan to continue saving towards your dream of renting an RV, piling the family in, and traveling the United States; or perhaps you and your spouse dream of going on a world cruise; or maybe, you want to live in a foreign country for 3 months and experience a new culture. Since the dream is still at least a year away, now might be a good time to put the funds you have saved into a 12 month CD. This will allow those funds to grow with the higher interest rate, while you continue saving towards your goal in your separate savings account.
  • Received a large gift of money – Many times major life events are marked with the giving and receiving of money. Examples are high school or college graduation, engagement parties and weddings, and inheritances. You may benefit from utilizing a CD for a certain length of time while you decide what the best use of the funds may be. 
  • Significant savings: You have saved a large sum in your savings account. Perhaps you’ve sold some assets, received an inheritance, or have been saving a certain amount every paycheck into your account. As part of your financial plans, you have decided not to put it into riskier investments. A CD might be a good fit as you will gain interest while still saving the funds.

Stop in or call one of our experts about our CDs and interest rates, and learn how your money is protected.

We’re here to help you find a savings plan that works best for you.