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Have you heard about our latest CD special? With rates this good, you'll feel like you're on cloud... well, you know.

The Benefits of Investing in Certificates of Deposit (CDs)


Saving and investing are both high on most people’s financial to-do lists, but with so many different options available, it can be hard to know where to start. Security, compounding frequency and interest rate are just a few of the factors you need to consider when you're deciding how to invest your hard-earned money, but finding a financial institution that can offer you advice and solid financial products should be the first item on your list.

 

InTouch Credit Union provides its members with a full offering of investment and savings services, and one of the safest places to start is a certificate of deposit, also known as a CD. A common question people often ask is whether CDs are a good investment. Let’s start with the basics of CDs.

 

What is a CD?

 

A certificate of deposit is basically a savings account that offers a higher, fixed rate and dividend than a typical savings account. But where CDs differ from savings accounts is access. CDs are held in terms ranging from three to 60 months, providing a secured account where you can earn better rates on your money than regular savings accounts. The only downside is that you don’t have instant access to your cash and you must meet minimum deposit requirements ($1,000 or more) to start. Rather than allowing your extra money to sit in a low-yield savings account, let your money make more money in a CD instead.

 

CD rates

 

CD savings rates are largely dependent both on the market and the individual financial institution. InTouch Credit Union’s rates on CDs are higher than most other local competitors, and with the range of terms and several tiers it offer, it’s easy to find a CD that will fit your investment needs.  

 

The dividends for a CD are earned monthly, and you can decide whether to deposit them into another account or put them into the certificate. When the term matures, your CD will either roll over into a new term or can be withdrawn without penalty. Talk to your financial advisor at InTouch Credit Union today to learn more about whether a CD is right for you.

 

Other savings opportunities

 

Saving for the future is an important part of any financial plan. Many people opt to use a CD to save for a child’s education because of the high rate of return and longer terms. Beyond CDs, InTouch Credit Union offers many ways to encourage young people to start saving for their future.

 

The Youth Checking and Savings program offers accounts for every age group, including Chip's Kids Club for children 0-12, Geared Up! for teens 13-17 and On My Own for young adults 18-24. Each of these programs is individually tailored to the age of the child to promote saving and proper money management. It’s never too early to set your child on the path to financial freedom.

 

Start saving today!


Regardless of whether or not you’re ready to open a certificate of deposit, it’s never too late (or too early) to start saving. Become a member of InTouch Credit Union today to gain access to an array of savings options at your fingertips.