As the new year approaches, many of us are eager to set new financial goals and make smart investments for the upcoming year. If you are seeking a short-term investment option, consider setting up a Certificate of Deposit (CD) to elevate your finances. In this blog, we will explore the basics of CDs and explain how investing in them can lead to substantial savings in the near future. 

What Is A CD And How Do They Work? 

A Certificate of Deposit (CD) functions as a savings tool, closely resembling a regular savings account but with the advantage of usually offering higher interest rates. CDs earn a fixed rate of interest over a set period, known as a term, typically ranging from six months to two years. Typically, longer CD terms come with higher interest rates, which are influenced by market conditions. However, early withdrawal from a CD can result in penalty fees. To learn more about CDs, be sure to check out our previous blog “What is a CD?” 

Advantages Of Investing In CDs 

Higher Interest Rates 

In many instances, CDs present higher interest rates compared to savings accounts, allowing you to increase your earnings on a deposited amount. Whether you are saving for a specific goal like a down payment on a house or planning for retirement, CDs can be incredibly beneficial in reaching your financial objectives. 

Safety 

The Federal Deposit Insurance Corporation (FDIC) insures CDs up to the legal maximum of $250,000 per account type and customer. At Sun Canyon Bank, we go the extra mile to provide further security with IntraFi® Network Deposits. This unique product uses a network of banks to offer FDIC insurance for deposits exceeding $250,000, giving you peace of mind for larger savings. 

Predictable Returns 

CDs offer a worry-free investment experience. They provide predictable and guaranteed returns on your investment. Known for their low-risk nature, the only possible loss with CDs comes from early withdrawal penalty fees. 

Take Time To Invest – It's Easy 

When it comes to CDs, there are several solutions to match your specific financial objectives. The types of CDs Sun Canyon offers include: 

  • 6-month  

  • 12-month 

  • 13-month 

  • 15-month 

  • 2-year 

By exploring these diverse CD options, you can find the perfect fit for your financial goals and enhance your savings strategy effectively. At Sun Canyon, we understand that everyone's financial goals are unique. That is why we offer a range of CD terms, tailored to meet your personal savings objectives. Click here to explore the competitive rates our CD terms offer and find out how opening an end-of-year CD with us can boost your savings for the upcoming year.