![]() At the end of your CD term, you’d have $5,255 and change. Certificate of deposit calculators allow you to plug in the amount you’re saving and your APY to gauge how much your money will grow.įor example, say you open a five-year CD with $5,000 and earn a 1.00% APY. Guaranteed ReturnsĬD accounts offer predictability in that it’s relatively easy to determine how much interest you’ll earn over time, since rates are typically fixed for the entire term. At federal credit unions and the majority of state-chartered credit unions, the NCUA insures your money up to the same limits. The current coverage limit is $250,000 per depositor, for each account ownership category, per financial institution. So long as you purchase your CD account through an FDIC-insured bank, you’re covered in case the bank shuts down or goes out of business. That’s because money held in a CD is insured. SafetyĪlong with savings accounts and money market accounts, CDs are some of the safest places to keep your money. Here are some of the main benefits or advantages of saving money with certificate of deposit accounts. There are several reasons why you may consider using a CD for managing your savings goals. Pros of Using a Certificate of Deposit for Savings However, it’s important to note that many banks automatically roll your savings into a new CD at the end of the term if you don’t specify that you want to make a withdrawal. Once a CD matures, you’re free to withdraw the money you saved, along with interest earned. Bump-up and step-up CDs, for example, offer the opportunity to raise your rate once or twice during the CD term. The annual percentage yield (APY) for CDs is typically fixed, meaning you earn the same rate for the entire CD term. Some banks may, however, offer promotional CDs that feature higher rates with shorter terms. As a general rule of thumb, the longer the CD term, the higher the interest rate you can earn. You’ll also have to choose a CD term, which is the length of time you agree to keep your money tied up in the CD.ĬD terms can range from as little as 28 or 30 days up to 10 years or more, depending on the bank or credit union. Opening a CD account is similar to opening a savings account in that there may be a minimum initial deposit you’re required to make. CD accounts, on the other hand, operate under the assumption that you won’t withdraw any money until the CD matures. For instance, with those accounts, you can generally make up to six withdrawals per month if needed. ![]() A CD allows you to hold money for a specific amount of time while earning interest.Ī CD can be used as a savings vehicle, but it isn’t the same as a savings account or money market account. What Is a Certificate of Deposit?ĬDs are time deposit accounts offered by brick-and-mortar banks, credit unions and online financial institutions. Please click here to see your rate before applying. ![]() Up to 4.90% Annual Percentage Yield (APY) for 11 months.Up to 4.80% Annual Percentage Yield (APY) for 7 months.Captivating exceptional member service and experience is top priority, as our mission is “To be your most trusted and valued financial partner for life.Get special CD rates with U.S. Our outstanding benefit package includes, but is not limited to: Generous health, vision, and dental package, tuition reimbursement, student debt repayment program, paid volunteerism time, paid time off & paid sick time, 401(k) matching, life & disability, and competitive wages & incentive pay. Six months to one year of experience in financial services or sales related field, as well as being extremely sales oriented with a strong desire to continually surpass goals and sales targets is preferred. Member Relations Representative - Alpena NorthĪre you ready for a new and thrilling career? As a Member Relations Representative at Alpena Alcona Area CU's Alpena North Office, you will be responsible for creating an incredible “first impression” to all who enter the branch - from existing to prospective members - through the promotion of credit union financial products. ![]()
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