Tag Archives: CD

What is a Certificate of Deposit

What is a Certificate of Deposit? 

Do you know what a Certificate of Deposit is? Today we are going to outline the top 5 reasons you should open a Certificate of Deposit (CD), what a CD is, and why it financially makes sense to open one now. Keep reading to learn about the benefits of a Certificate of Deposit.

1. What is a Certificate of Deposit (CD) 

For the folks who think the market is the only place to invest your money, we hope to change your mind by the end of this blog. A Certificate of Deposit is a product that provides an interest rate premium in exchange for the customer leaving a lump-sum deposit untouched for a predetermined period of time. Investing your money is the best way to make your money work for you – consider opening a CD with us to work yours.  

2. CDs Have Higher Interest Rates  

What you may not know is that CDs pay a significantly higher interest rate than savings accounts or money markets as long as you leave your deposit untouched for that predetermined period of time.  

3. If You Don’t Need the Money Immediately, Put it in a CD

There is a reason CDs pay higher interest rates than savings accounts and we are going to fill you in on why. You can pull your money in and out of your savings account as you please. With a Certificate of Deposit, you’re required to lock your money in for a set amount of time. With that being said, if you absolutely have to withdraw money from a CD you may experience a fee.  

So to put it simple, if you have a chunk of money saved that you don’t need immediately, it is worth it to open a CD and stash it away. As the saying goes, make your money work for you and it absolutely will if you move it from a Savings or Money Market account to a Certificate of Deposit 

4. CDs are Safer and More Conservative Investments

Certificates of Deposit accounts are known as a safer and more conservative investment option in comparison to stocks and bonds as they offer lower opportunities for growth, but with a non-volatile, guaranteed rate of return. Although you lock into a set period of time when you open a CD, there are options for exiting early should you encounter an emergency or change of plans.  

5. CDs Can Provide You Peace of Mind 

Certificates of Deposit provide you with fixed rates for fixed terms. In a world of unknowns, especially right now, knowing the benefits of a CD can provide invaluable peace of mind when it comes to your money. Feel secure in knowing potential gains in an uncertain market don’t outweigh the need for a financial product like a CD that provides reliable growth.  

Are you ready to move your money to a Certificate of Deposit? We can help answer any questions you may have and get your new account started! Contact Peoples Bank & Trust today to discuss a Certificate of Deposit!  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Different Ways to Save

Savings

After the bills are paid, the groceries purchased, and the kids taken care of, it’s time to decide what to do with your monthly surplus. One of the most financially responsible choices you can make is to save those additional dollars! By tucking away even a small amount of money each month you can prepare your finances to withstand any unforeseen expenses. Check out these important savings options available at Peoples Bank & Trust, and get started towards your next financial goal.

IRA: These Individual Retirement Accounts are typically divided into two categories, the Roth IRA and the Traditional IRA. It’s best to speak with your financial advisor or tax representative to determine which option best suits your personal finances. These accounts allow you to contribute funds pre or post taxes and after years of accumulation and compounding enable you to withdraw them upon your retirement.

CD: When you have funds that you intentionally don’t want to touch for a set period of time, a CD or Certificate of Deposit, can be a great resource! By depositing your money within a CD you are guaranteed interest on your account, often higher than the standard savings account. You must leave these funds untouched for the agreed period, typically a minimum of six months, ranging upwards to nearly five years.

Savings Account: Your typical savings account can help you manage personal funds without the hassle of navigating around any red tape. With constant access to withdraw and deposit post-tax funds you can set up multiple savings accounts for various needs. These accounts can help you save for emergencies, vacation, retirement, or other important purchases while gaining a small amount of interest.

For all of your savings needs, Peoples Bank & Trust is here to help! Our new account representatives will help you find the ideal savings option for you and your family. Get started and stop by today!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC