Certificate of Deposit (CD) Help
A CD is similar to a savings account in that it's FDIC insured and virtually risk-free. However, a CD has a specific length of time, or term, that your money is held (often three months, six months, or one to five years) and usually, a fixed interest rate.
- Great rates with guaranteed returns.
- Wide variety of terms available to fit your needs.
- Knowing your investment is FDIC insured up to $250,000 per depositor.
Interest on CDs is paid at least once per year in several methods:
- Accrued interest is added to the principal annually or at maturity if the CD period is less than one year.
- Interest is directly deposited to your checking or savings account monthly, quarterly, semiannually, or annually.
CDs are self-renewing at maturity at the current interest yield offered for new certificates with similar terms. Once the CD reaches maturity, you may withdraw your money or reinvest into a new CD. Certificates may not be withdrawn wholly or partially prior to their stated maturity without substantial penalty.