Certificate of Deposit and Individual Retirement Accounts

What is a Certificate of Deposit* (CD)?

A CD is a deposit account that helps you save for the future. It is similar to a savings account, with a few distinct features.

• Term: When you open your CD you agree to leave your money on deposit at the bank for a specific period of time. This is known as the CD term. It may range anywhere from a few months to a few years. If you withdraw any part of your initial deposit prior to the end of the term, also known as the maturity date, there is often a penalty fee assessed.
• Interest rate: Unlike savings accounts, where the interest rate may fluctuate over time, with a CD the interest rate (or annual percentage yield) is normally locked in for the full term, from the date the account is opened to maturity. CDs often earn a higher rate of interest than a traditional savings account.
• Minimum balance: Most CDs have a higher minimum balance than traditional savings accounts.

What is an Individual Retirement Account (IRA)?

At its core, an IRA is a personal retirement savings plan. There are many types of IRAs and certain parameters for each. Learn more.^

• Traditional IRA
• Roth IRA
• Simplified Employee Pension Plan (SEP)
• SIMPLE IRA Plan
• And more