Have you ever taken a pair of pants out of the dryer and found some forgotten cash in one of the pockets? That’s an awesome surprise because it’s like you gave a present to yourself. Certificate of Deposits (CD) are similar because they can act like a gift you’ll give yourself in the future.
Now that the holidays are right around the corner, some of you may be getting a larger cash gift than finding a couple dollars in your freshly-washed jeans. Do you plan on putting it in a savings account? Have you ever thought about looking into a CD?
While CDs aren’t for everyone, they are a great option for saving money to help fatten up your savings. Then you can experience that holiday joy for a second time when you see how much your money has grown!
So why are CDs good for saving? We were just getting to that.
Beef up your savings
Having higher interest rates than your typical savings account, CDs are an effective way to enjoy higher returns that in turn grow your savings faster than you normally could.
Let’s say you want to put away $1,500 and don’t plan on using it for a while. This is where you would want to put it. The amount of time you have matters because a CD earns more money the longer your term is.
Keep adding to it
You normally can’t do this. However, our Online Savings CD is special because, unlike other certificates, you can continue to contribute during the term. How cool is that? That means you are growing your money in two ways: Earning interest and adding more money as it becomes available to you. Talk about a win-win.
Just remember that all additional deposits must be made online or through Member Services.
Risk? What risk?
If investing your money in the stock market makes you nervous, a CD is a low-risk option that can help you earn more money without constantly worrying about how the stocks are doing each day. CDs come with a fixed interest rate, so that means the rate you see when you open the account is the rate you get until it matures.
Another benefit of fixed rates is being able to estimate your annual earnings so there won’t be any disappointing surprises.
As always, don’t hesitate to reach out to Member Services if you need any assistance.
We hope your holidays are happy and bright!
View our Certificate Rates