Certificate of Deposit (CD)
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT
Certificate of Deposit (CD) – a low-risk option to grow your money
Advantages of CDs
- Low risk, especially when compared to other types of investment tools
- Great flexibility, with terms ranging from 91 days to 60 months
- Higher interest rate
- No-fuss savings: once your CD is set up, all you need to do is wait until it matures!
CDs combine guaranteed returns with stress-free simplicity.
A CD is a savings certificate that offers a fixed interest rate payment for a set period of time. The benefit of a CD is that the interest you receive on your savings grows at a quicker rate than in a savings account.
CDs are safe.
Your deposit gains value over an agreed-upon duration, though it may be subject to fees if withdrawn before the end of that time. Your investment is safe because it is covered by insurance from the Federal Deposit Insurance Corporation (FDIC), usually up to at least $250,000.
CDs offer predictability.
Holding a CD brings income predictability, as you will know how much your CD will be worth at the end of the term. Unlike the stock market, there are no market-based changes as the CD matures.
CDs have better returns than saving accounts.
Unlike traditional savings accounts, CDs offer higher interest rates. As a result, this allows you to earn more money on your original deposit.
Prudential Bank offers CDs with a wide selection of options.
We offer a variety of CD terms –from 91 days to 60 months– to fit your desired saving plans. Of course, the longer the term, the more you earn. Just call us for current interest rates and specials, and we’ll help you choose the best option for your specific needs.
How does a CD actually work?
When you deposit money for a specified period (known as a “term” or “duration”), Prudential Bank pays a fixed rate that is generally higher than rates offered on other types of savings accounts. When your CD reaches its maturity date (once the term is over), you have the penalty-free option of removing all or a portion of the funds. Specific CD terms also provide the option of automatically rolling your funds over to a new CD term.
Choose the right CD for your savings goal.
Because CDs offer a higher yield to compensate for the loss of liquidity, or access to your funds, there are a number of factors you should consider. For example, if you need the money soon, consider a CD with a short term, but if you are saving for something five years down the line, a CD with a longer term maybe a better option.
Ready to open a CD?
Our high-yield CD accounts offer great flexibility to match all your savings needs. Take the first step towards your financial freedom. To learn more about CDs and our other products and services, our customer service department is available to take your call: 215-755-1500.