Pssst... It's a good time to invest in a CD
Speaking neighbor to neighbor, right now is a great time to think about saving. NCSB currently has a special offer on seven-month Certificates of Deposit (CDs) with a noteworthy 5.00% rate and an APY of 5.12%.*
This is a significant increase the from lagging, post-pandemic interest rates. In January 2022, for instance, the annual percentage yield for a one-year CD hovered at a mere 0.13%, according to FDIC data.
What’s the difference between a CD and a typical savings account? A CD is a type of bank account that allows you to save money typically for a fixed amount of time and at a fixed interest rate. Because you’re committing to leaving your money in the account for a set amount of time, the interest rate is usually higher than that of a traditional savings account.
What makes a CD a good investment?
- Predictable Returns. With a bank CD, you know exactly how much interest you will earn over the CD's term. The interest rate is fixed, so there is no market risk or fluctuation in returns like with stocks or bonds. With the current 5% interest rate, for example, you can earn $tk total in interest for every $1,000 you save in a 7-month CD.
- Safety. CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to typically $250,000 per account.
- Low Risk. Bank CDs are low-risk investments. This makes them a good option for conservative investors or those looking to preserve capital. You are guaranteed back your initial investment, known as the principal, with interest once the fixed amount of time is completed or, in bank terms, once the CD “matures.
- Discourages Impulse Buys. By locking your money into a CD for a set amount of time, you are less likely to spend it on knee-jerk purchases. This may be helpful, say, if you are looking to save up for a summer vacation in 2024 or some home renovations come spring.
To learn more about our CD program and this special offer, contact a banker at your local branch. Call or stop by. They will be happy to speak with you.
*A daily method will be used to calculate interest on the account, and a daily periodic rate will be applied to the principal. You must deposit $1000.00 to open this account and you must maintain a minimum balance of $500.00 in the account to obtain the disclosed annual percentage yield (APY). If you withdraw any of the principal before the maturity date, we may impose a penalty of ninety days simple interest at the rate in effect on the account. Interest earned within a term may be withdrawn, but withdrawal will reduce earning. Fees could reduce earnings. There is a limit of $250,000.00 deposited per tax owner for this product. APY is effective October 10th, 2023.