Thinking about opening a certificate of deposit (the credit union equivalent of a bank CD)? Here are three questions to answer before you invest money in a certificate or CD.

  1. Are the funds in certificates of deposit insured?
    Funds are federally insured as they are in other bank accounts, meaning your funds get returned to you even if a bank goes bankrupt. CDs also don’t have the risk of fluctuation in value as in the stock market.
  2. I think CD rates Minot ND are going to rise quickly over the coming months. Should I still purchase CDs?
    A CD’s fixed rate can be a double-edged sword: It provides guaranteed returns, but if rates rise, you lose out on higher rates after you lock in yours. At the end of the day, a CD is going to be the right tool, regardless of what’s happening in the interest rate environment.
  3. Is it better to open a certificate of deposit with more or less money? (Does the amount of my deposit affect my CD rate Minot ND? How much money do I need to deposit to get the best rate?)
    Many banks have graduated rate scales, offering a certain rate for a deposit of, say, $500, and a higher rate for deposits of, say, $50,000. In such cases, you will get a higher rate for a larger deposit. At Aspire Credit Union, only the highest rate tier is listed so you can rest assured that you are identifying the highest rates available in the market.
  4. Do I need more distance from some savings?
    Say you come into an inheritance or other type of windfall; or you’ve built up savings for years; or, you have put some savings in a share certificate to keep it out of reach. Whatever the reason, a CD is built to keep you from being tempted to spend those funds.
  5. Are there taxation differences between incomes from a credit union (CU) shares versus bank deposits (CDs)?
    No, distributions from CU share certificates and time deposits are treated as current interest income, just like interest from bank savings and CD accounts.

CD rates Minot ND are typically higher than rates on traditional or high-yield savings accounts. Connect with us and we can get really close to you to help you with whatever your financial needs are.