Certificates of Deposit (CD) Accounts

A CD (certificate of deposit)^ is a time deposit, a financial product commonly offered to consumers by financial institutions. Typically, CDs are insured by the NCUA for credit unions and the FDIC for banks. When insured, CDs are similar to savings accounts in that they carry less risk than equities. They are different from savings accounts in that the CD has a specific, fixed term, and usually, a fixed interest rate. It’s intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest. In exchange for keeping the money on deposit for the agreed-upon term, institutions usually grant higher interest rates than they do on other interest-bearing deposit accounts from which money may be withdrawn on demand. Fixed rates are common, but some financial institutions offer CDs with various forms of variable rates, like our own 36-month Step-Up CD option. 

^{^} CDs offered through financial institutions offer a fixed rate of return if held to maturity, whereas the return and principal value of an investment in equities fluctuates with changes in market conditions. 

Compound interest pays you interest on your principal; then, when it’s time to pay interest again, you’re paid interest on your principal and the previous interest that you earned. In other words, the interest that you’re paid adds to and becomes part of the principal that accrues interest during the next period. You have a continuously growing principal amount without having to make another deposit. 

Call, start a chat on our website or stop by a branch to request to step up the rate on your CD. 

Once you complete your request, you will see your new APY and applicable interest postings on your next statement. 

No. You may only choose to step up your rate once during your CD’s three-year term. However, when your CD automatically renews for another three-year term, you’ll once again have one opportunity to step up your rate.