Certificate of Deposits (CDs) are a great way for customers to grow investments over a set term with very low risk. Traditionally, CD rates are currently higher than they have been in the past 10 years.

How do CDs work?

A certificate of deposit is a type of savings account where you deposit a lump sum that can grow by earning interest for a set period of time. CD rates Minot ND are typically higher than rates on traditional or high-yield savings accounts — but in exchange for that higher rate, you agree not to withdraw money from the account for the specified term — commonly 6, 12, 24, 36, 48, 60, and even 120 months. Typically, the longer the term, the higher the rate. Here’s a breakdown of various factors that make up CDs.

CD rates Minot ND – Interest rates are one of the first factors you want to consider when comparing CDs. You also want to know how these interest rates are calculated. For instance, some CU use the annual percentage yield (APY) method to calculate interest on an annual basis, while others compound interest monthly.

CD terms – Terms generally range from three months to five years, and terms can impact both rates and early withdrawal penalties, which are fees charged if you cash out a CD before the term ends. Generally, the longer the term, the higher the rate; and penalties tend to be bigger for longer terms.

CD safety – When investing in CDs from a credit union, these funds are protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. This protection means that if something happens to the bank where your CD is located, you still get your money back as long as you have $250,000 dollars or less. This makes CDs just as safe as your money in a savings or checking account.

As you are agreeing not to touch that money for the term of the Certificate, you will typically earn a higher rate of interest than you would in a regular savings account or money market. See Aspire’s CD rates and terms
For more information on CD rates Minot ND and how to find an option that works well for you, please contact us today!