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Myth Busting: Certificate of Deposits

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Work successes are fun to celebrate – getting a raise, beating sales quota or landing a new customer are good reasons to raise a glass to your hard work!

Since you’ve worked hard for your money, it’s smart to make it work for you by opening a City CU Certificate of Deposit. Even though they have been around awhile there are still a lot of misconceptions about CDs. They earn more interest than a regular checking or savings account, they make money less accessible for impulsive spending, and they can be an important part of your overall savings plan.

To help reduce the misinformation surrounding CDs we have busted some popular myths.

There is only one kind of CD
There are 11 different types of CD accounts. City CU offers two different types with terms ranging from 6 to 60 months – a Regular CD and an IRA CD. Unlike a regular CD, an IRA CD offers certain tax advantages that are associated with a traditional or Roth IRA. We have CDs for everyone.

I need a lot of money to get a CD
Many people mistakenly believe they need $5,000 to $100,000 to open a CD, but in fact CCU only requires a minimum opening deposit of $1,000, making it a low risk investment.

I can lose money with a CD
That may be true for investment CDs that are tied to the stock market, but it is simply not true for CCU’s federally insured CDs. Even if you withdraw your money early and incur the resulting penalty, the penalty is typically only a small portion of the interest you’ve earned. CDs are effective way to save money while you earn interest safely.

My money will be unavailable for too long
We offer terms ranging from 6 to 60 months. It is only a long-term investment if you want it to be.

CDs are an excellent way to get a better rate of return on money that would otherwise sit in your bank account. City CU offers competitive interest rates, a low minimum deposit and an easy online application.

Make your money work as hard as you do.

Click here to check out our rates or open your CD today.