Q: What are the benefits of CDs?
A: A Certificate of Deposit (CD) is a safe way to save money and earn a relatively high interest rate.
How are CDs Funded?
CD account holders’ funds are federally insured by NCUA and Education Credit Union offers additional coverage with ESI Insurance with returns guaranteed when money is left in the account for a specified period. It’s a simple and secure way to let savings grow.
Can My CD Rates Rise And Fall?
If interest rates fall in the broader economy CD rates remain constant for the duration of the account term. Some may coin CDs as a boring investment because of the lack of fluctuation, but the constant rate creates a predictable return.
Financial institutions can provide a list of CD terms, payment frequencies, and annual percentage yields (APY) to help potential account holders navigate their options. Education Credit Union, which serves Amarillo, Bushland and Canyon, Texas, offers CDs at minimum earning balances of $5,000 to $10,000, with terms as short as 182 days and APYs ranging from .20% to 1.00%.
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