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What is a CD? | Short- and Long-Term Goals | Benefits and Considerations | Options at Maturity | CDs with FSB |
No matter what method you use to save money, you've likely heard of a Certificate of Deposit, commonly known as a CD. While the term CD may be familiar, many fail to consider them simply because they lack awareness of what this type of account does and how it can benefit them. If you're looking for a savings account that provides higher returns than a regular savings account, consider a CD. Certificate of Deposits with FSB What is a CD?Put simply, a CD guarantees the interest rate on the money you deposit, assuming you do not withdraw the funds before the end of the term. These rates are almost always higher than regular savings accounts and are fixed for the duration, meaning they will not change. The interest compounds over the life of the CD, growing your initial deposit. Typically, the longer the CD term is, the higher the interest rate is. Financial institutions can be flexible with their rates, often depending on bank size, business, and deposit amounts. Be sure to shop for a CD to find the best rate and get the most out of your money! Meeting Short- and Long-Term Goals with CDsMost often, CDs help meet savings goals, both short- and long-term. Deposit minimums are required for most accounts and vary based on term length and across different financial institutions.
Benefits and Considerations of CDsWhat are some of the benefits and considerations of CDs?
Options at MaturityWhen your CD reaches maturity, you have a few options:
ConclusionCDs offer a safe and flexible way to compound interest on your initial deposit. Whether you're searching for a short- or long-term CD, various options are available to suit individuals in all stages of life. Find out how FSB can help you reach your saving goals today! Get Started with FSB Certificate of Deposits with FSB Helpful LinksFinancial Resource Center Contact a Banker Related Articles
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