CD Description

Certificates of Deposit

Certificates of Deposit are a form of savings also known as a time deposit or "CD." Funds are deposited with the bank for a specified period of time. The bank will pay a rate of interest that is based on the term of the certificate. All certificates are automatically renewable. There is a seven day grace period after the maturity date to cash the certificate. A penalty may be imposed by the bank for early withdrawal. The interest paid may be compounded or simple.

Features & Benefits:

  • Interest rates on certificates are higher than on other types of savings accounts.
  • Simple interest may be paid monthly or quarterly by check or into a checking or savings account at our bank or at another bank by ACH.
  • Compound interest is added quarterly to the principal on 12-60 month certificates and is received at maturity. The actual return is referred to as the Annual Percentage Yield (APY).
  • Certificates make excellent collateral for loans.
  • Maturity notices, renewal notices, and year-end statements are mailed.
  • Interest rates for new and renewing certificates may change at any time at the Bank's discretion. Current rate information is posted in the bank lobby and on our internet site (see "Rate" link at left).
  • Guaranteed rate of return and FDIC insurance provides a safe, risk free investment for personal funds, retirement funds (IRA), or business funds.
  • Most certificates require a $200 minimum deposit. Certificate terms range from 91 days to 60 months.
  • Added Advantage certificates require a $2,500 minimum deposit. Certificate terms are 18 or 30 months. The 18 month term includes a one time option to increase the rate to our current posted rate, and the 30 month has a two time option to increase the rate. At the same time a rate is increased, you may add $1,000 or more to the same CD for the remainder of the term.
  • Early withdrawal penalties range from 30 days interest to 365 days interest depending on CD type. A minimum early withdrawal penalty of $25.00 will apply to all CD types.