As you think about saving for the future and maybe even supplement your retirement, many ideas come to mind — open a savings or money market account, save cash in a fireproof safe, or even give extra cash to a trustworthy family member for safe keeping. And while those are all great ideas, none of them are growing your savings at a quick pace!

WHAT IS A CERTIFICATE OF DEPOSIT?

A Certificate of Deposit (CD) is a type of savings account offered by banks and credit unions where you agree to keep your money in the account without taking a withdrawal for a specific length of time. Withdrawing the money early means paying a penalty fee to the bank.

So, how do CDs work?

  • You deposit a lump sum into the CD account. NexTier Bank offers short-term and long-term CDs with a minimum opening deposit of $500. We also offer CD Promo Rates at select branch locations.
  • Agree to Terms. You agree to keep your money untouched for an agreed-upon term. NexTier Bank offers flexible terms ranging from 3 months to 10 years.
  • Earn Interest. The bank pays you interest at the fixed rate for that term. APY and Interest Rates vary based on terms.
  • Maturity: At the time of maturity, you can withdraw your original deposit plus all the earned interest. You can also let the CD rollover and earn interest for an additional term at the current CD APY when renewed.

HOW DOES A CD BENEFIT ME?

CDs are purchased because they are a safe, predictable way to grow savings with a higher fixed interest rate. Essentially an ideal way to save money needed by a specific date while offering guaranteed returns. CDs are also FDIC insured when purchased at NexTier Bank, up to $250,000.

In addition, investing in a CD will help discourage overspending. The early withdrawal penalty for taking money out before maturity helps you save for specific goals. And unlike stocks, your investment isn’t subject to daily market fluctuations.

Many banks will offer special CD rates from time to time. Although they require you to invest more money, the rate of return is greater.

For current interest rates on CDs, contact NexTier Bank at 1.800.262.1088 or visit your local branch. Please note: interest rates found on the internet using AI are in no way guaranteed to be accurate.

You can open a CD online or by stopping into a NexTier Bank office.