Author: Lisa Dixon, VP/Director of Retail Banking

If you’ve ever wondered how to grow your savings without the ups and downs of the stock market, a Certificate of Deposit (CD) might be just what you need. CDs are a safe and reliable way to earn interest on your money – perfect for anyone, whether you’re one or 100!

What is a CD?

A CD is a special type of savings account offered by banks. Unlike a regular savings account, where you can deposit and withdraw money at any time, a CD requires you to leave your money in the account for a set period, called the term. In return, the bank typically pays you a higher interest rate than a regular savings account. CD terms can range from a few months to several years.

What if I need my money early?

While CDs are designed to keep your money locked in for the full term, life happens! If you need to withdraw your funds before the CD matures, most banks allow you to do so, but there is usually a penalty. This penalty often comes in the form of losing some or all the interest you’ve earned—sometimes even a portion of your initial deposit, depending on the bank and the CD terms. Before opening a CD, it’s a good idea to ask about early withdrawal penalties so you know what to expect.

Why should I start a CD?

1. Guaranteed growth
   CDs offer a fixed interest rate, meaning your money will grow at a predictable pace. You don’t have to worry about stock market swings or losing money—what you put in, plus interest, is what you get out! Just a quick reminder that the growth potential might be lower compared to other investment options, and if you need to withdraw early, there could be penalties that may impact your return.
2. Safe and secure
   Because CDs are FDIC-insured (up to $250,000 per depositor, per bank), your money is protected. That makes them a great option for those who want low-risk savings.
3. Higher interest than a savings account
   While regular savings accounts offer flexibility, CDs reward you with higher interest rates for keeping your money in the bank for a set time.
4. Encourages saving
   Since you agree to leave your money in a CD until it matures, it helps prevent impulse spending. Think of it as a smart way to “lock away” savings for a future goal—whether that’s a down payment on a home, a dream vacation, or even Christmas gifts for the grandkids!

How do I get started?
Starting a CD is simple! Just visit your local bank, choose a term that works for you, and decide how much money you want to deposit. Once the CD matures, you’ll get your original deposit back—plus all the interest you earned.

If you’re looking for a safe and easy way to make your money work for you, a CD could be the perfect solution. Stop by our PremierBank today, and let’s find the right one for you!

If you’d like to learn more about our CDs to see if it’s a right fit for you, click here.