Certificates of Deposit
Certificates of Deposit (CDs) offer a safe and FDIC insured means of building your savings. CDs are available in a variety of rates and terms, and enable you to lock in a competitive rate of return while safeguarding your principal from market fluctuations.
Yields are based on the amount of your opening deposit and the length of your investment. Your interest rate is fixed for the term of your investment, so you know exactly what return you'll get and when you'll get it.
- Summary
- No commissions or management fees
- Interest accrues daily
- Automatic interest payments can be made to your account
- Automatically renewable
- Penalties for early withdrawal
- FDIC insured
You can maximize your insurance coverage by varying ownership options. A new interactive program called Electronic Deposit Insurance Estimator is now available through the FDIC to help you learn about Deposit Insurance and understand the insurance coverage for your accounts.
- Investment Tips
Let Your CD Work Harder for You
- Consider choosing a longer-term CD. Higher interest rates are generally offered for longer terms.
- Allow interest to compound. Don't spend your interest; let it build so you earn interest on the interest.
- Decide whether you think interest rates will rise or fall. If you think they will rise, get a shorter-term CD to take advantage of increasing interest rates. If you think they'll fall, lock into a longer-term CD to keep a higher rate.
- Determine how much liquidity you need. Longer-term, higher-interest rate CDs can tie up your money for longer periods of time, but generally offer greater growth. Shorter-term CDs can provide earlier access to funds you will need in the near future.
- FDIC Coverage
Effective October 3, 2008, the FDIC maximum limit on the federal deposit insurance coverage that protects your CD's at 1st National Bank is $250,000. Enjoy a little more peace of mind!
