What is a Certificate of Deposit (CD)?

CDs can have higher rates than standard savings accounts, but your cash isn’t as accessible. A CD is a type of federally insured savings account that has a fixed interest rate and fixed date of withdrawal, known as the maturity date. CDs also typically don’t have monthly fees. A CD is different from a traditional savings account in several ways.

• Term: from 1yr to 5 yrs
• Minimium Deposits from $2500 to $100,000
• APR: from 1.5%, to 2.5%
• Free Online and Mobile Banking

Savings accounts let you deposit and withdraw funds relatively freely. But with a CD, you typically agree to leave your money in the bank for a set amount of time, called the term length, during which time you can’t access the funds without paying a penalty. Term lengths can be as short as a few days or as long as a decade, but the standard range of options is between three months and five years. The longer the term length, the more you will earn. The longer the term length — the longer you commit to keeping your money in the account — the higher the interest rate you’ll earn.