Certificates of Deposit (CDs)
Investors searching for relatively low-risk investments often turn to certificates of deposit (CDs). A CD is a special type of deposit account that typically offers a higher rate of interest than a regular savings account. Unlike other investments, CDs feature federal deposit insurance up to $250,000 or more depending on ownership.
Here’s how CDs work: When you purchase a CD, you invest a fixed sum of money for a fixed period of time – six months, one year, five years, or more – and, in exchange, the issuing bank pays you interest, typically at regular intervals. When you cash in or redeem your CD at maturity, you receive the money you originally invested plus any accrued interest. But if you redeem your CD before it matures, an “early withdrawal” penalty or forfeiture of a portion of the interest earned will apply.
So…how can CornerBank help?
Most banks don’t allow you to add money to a CD. At CornerBank, we believe you should have the opportunity for your account to grow. If you’ve got a CD with a good rate, shouldn’t you be able to maximize your returns? We allow you to add to your CD in increments of $100 throughout the term of the CD, up to a maximum of $100,000 per CD. Sometimes, we offer “bump-up” specials, which is an opportunity to increase your interest rate on an existing CD without changing the term. Ask any of our personal bankers about current specials.
CornerBank CD Basics:
- Minimum deposits of $100 to $500
- Terms anywhere from 90-days to 60-months
- Ability to add deposits to your CD without changing the term
- No fees to purchase
- Automatic renewal at the same term and the current bank interest rate
- Funds may be withdrawn without penalty up to 10-days following maturity
- There may be a penalty for early withdrawal
To learn more about opening a Certificate of Deposit, contact a CornerBank Personal Banker at the location nearest you or call 620.221.1650 or 800.408.9273.