A Certificate of Deposit (CD) is the perfect solution for
investors searching for relatively low-risk investments that can
easily be converted into cash. A CD is a special type of deposit
account that typically offers a higher rate of interest than a
regular savings account.
Here’s how CDs work: When you purchase a CD, you invest a fixed
sum of money for a fixed period of time – six months, one year, two
years, three years – and, in exchange, the issuing institution pays
you interest, typically at regular intervals. When you cash in or
redeem your CD, you receive the money you originally invested plus
any accrued interest. But, if you redeem your CD before it matures,
you may have to pay an "early withdrawal" penalty or forfeit a
portion of the interest you earned.
1st Credit Union offers a variety of CD solutions. Choose the
maturity that best fits your situation.