If you want to set aside some extra cash to earn more interest than a typical checking or savings account, consider a certificate of deposit (CD).
This popular savings option helps you grow your hard-earned money faster than a standard savings account, and opening a CD is easy. Why choose a (CD) over other savings account options? Learn the basics of CDs and how they can benefit your savings goals.
A certificate of deposit, or CD for short, is a smart savings option that allows you to deposit a minimum amount of money for a specific period of time. In exchange, you’ll receive higher interest payments than typically found with money market accounts and traditional savings accounts. A CD is also backed by FDIC insurance, so it is a safe investment.
You choose the length of the term, ranging from months to years, and earn interest. At the end of the term, you can choose to take the payout and reinvest in another CD. If you withdraw money before the maturity date, you may be subject to an early-withdrawal penalty, so it’s wise to choose this account when you can keep your money on deposit to maximize your savings.
At First American Bank, you can open a CD for as little as $1,000.00 as an existing customer. Our terms range from 3 months to 5 years. Check out our current CD rates.
If you know you don’t need immediate access to your money and you want to earn better rates than traditional savings accounts, a CD may be the right savings tool. The friendly bankers at First American Bank are here to guide you through all of life’s stages and can help you decide what savings account or CD option makes the most financial sense. If you have any questions about how First American Bank can help grow your savings, visit us at one of our branches in Illinois, Wisconsin, or Florida, and feel free to contact us at your convenience.