No one can argue that we are living in extremely
unpredictable times, and with economic uncertainty comes the need for
reassurance that your money is safe.
For many, parking their money in a certificate of deposit
(CD) may provide the feeling of security they seek while their money earns
interest at a higher rate than a traditional savings account.
What exactly is a certificate of deposit? A
certificate of deposit, commonly called a CD, is a special savings account you
can open at most banks and credit unions. But unlike a regular savings account,
CDs require you to lock your funds away for a specific period of time until a
maturity date. In return, you'll get a higher interest rate.
This unique feature makes CDs perfect for a long-term
savings goal. You can get better interest rates than a savings account would give
you.
If you have funds that you want to keep safe for anywhere
from a few months to a few years, a CD could be a good way for you to save.
There is a penalty for withdrawing your funds early, which makes it easier to
stow that money away and forget about it.
CD interest rates generally go up as the term increases. So,
you'll get a lower interest rate with most three-month CDs than with 12-month
CDs. Common time periods for CDs are three, six, 12, 24 or 60 months.
CD interest rates are typically lower than investment
returns from the stock market, but most CDs
are fixed-rate and federally insured. That means you can rest assured
you won't lose money if the stock market declines. That's why a certificate of
deposit is a great tool for storing money for a down payment or another
long-term financial goal or purchase!
At Telhio, we offer CD terms from three months to
five years, and the interest rates are commensurate with the length of the
term. In a CD, your deposit is secure and insured, and interest is compounded
and paid quarterly. So, if you are certain that you won't need some of your
money for a period of time, consider a CD and rest assured your money will be
safe while growing for you!
Telhio Credit Union is open to anyone
who lives, works, worships, or goes to school in Central or Southwest
Ohio. Founded in 1934, originally as the credit union for the Columbus
Telephone Co., Telhio is a not-for-profit financial cooperative where its
members are also its owners. Driven by its philosophy that members come first,
Telhio is committed to the highest standards of responsibility and conduct.
Telhio offers a variety of innovative programs, services, and products to
support its members' financial needs. Telhio offers twelve branching offices
throughout Central and Southwest Ohio and nearly 4,000 shared branching
locations nationwide. Federally insured by NCUA. Equal Housing Opportunity.
NMLS #251831
