Overview
Lock in a fixed term and rate with a certificate of deposit that fits your savings timeline.
Highlights
- Terms from six months to five years.
- Fixed rates for the life of the CD.
- Automatic renewal options.
- Laddering strategies for flexibility.
How a CD works
A certificate of deposit trades access for a fixed term and a fixed rate. Ask a banker for current rates and terms.
- Choose a term that matches when you need the money.
- Keep the deposit until maturity to avoid an early-withdrawal penalty.
- Compare the rate with a savings or money market account.
- Consider laddering several CDs to spread maturity dates.
Choosing a term
Short terms offer more flexibility; longer terms may offer a different rate. The trade-off is personal.
- Common terms range from six months to five years.
- Automatic renewal is a common CD feature.
- Interest can be paid periodically or at maturity.
- Talk through goals before locking up funds.