Benefits of a Certificate of Deposit (CD) | Ion Bank

Whether you’re planning a tropical vacation or need to buy a new car, a savings account can help you reach your goals. A certificate of deposit (CD) is a financial product that allows you to earn interest on the money you deposit for a fixed period of time. Learn more about the benefits of opening this type of savings account.   

1. A Safer Choice for Savings

Certificates of Deposit are considered safer than the stock market or bonds since you can expect predictable returns. The interest earned on a CD lets your money grow consistently but keep in mind, withdrawal penalties can affect your interest payment or principal.

2. Fixed Rate for Your Term

Investing in the stock market can be unpredictable, as prices change daily based on supply and demand. Rather than relying on market performance, the Certificates of Deposit at Ion Bank come with a fixed interest rate for the length of time you choose. This allows your money to grow without fluctuation from rate increases or decreases.

3. Different Maturity Rates

With a CD account, you can easily estimate how much your money will grow over time. If you’re saving for a specific goal, you can put away funds for the timeframe that helps you reach it. For larger expenses, such as a wedding ceremony, you can put your money in a CD that matures right before you need it.  

4. Can Have Low or No Fees

While some banks do not charge a monthly fee on CDs, it’s important to remember that withdrawals will affect the interest earned. Make sure you read and understand the terms before opening a Certificate of Deposit account.

5. Higher Interest Rates

Compared to other savings options, CDs tend to offer higher deposit rates since you’re agreeing to keep your money in the account for a set time period. Consult with a financial professional to determine if current CD rates are in line with your savings goals.

Contact Ion Bank to discuss opening a Certificate of Deposit account today.