Benefits of a CD

4 October 2023
Category: Uncategorized
4 October 2023, Comments: Comments Off on Benefits of a CD

Whether you’re saving for a down payment on a home, your retirement or to help finance college tuition, a certificate account (CD) may offer an attractive and stable growth opportunity for your money.

What is a CD?

A certificate account (CD) is a savings account that earns interest on a fixed amount of money for a set period of time. These accounts are usually much more predictable than others and offer a safer option. Unlike a regular savings account, when you invest in a CD, you are committing to keeping the money in the account for an agreed-upon period.

What Are the Benefits of a CD? 

Guaranteed returns

Unlike regular savings accounts where interest rates can fluctuate, CDs offer guaranteed returns. This means you can rest assured that your money will grow steadily over time, regardless of market conditions. It’s a stable and secure way to see your savings blossom!

Safety and security

The National Credit Union Administration (NCUA) insures all LCU deposits up to $250,000. This means that your investment is protected, providing an added layer of security for your financial future.

Diverse term options

At LCU, we understand that everyone’s financial goals and timelines are unique. That’s why we offer a range of term options for our CD accounts. Whether you’re saving for a short-term goal like a vacation or a long-term goal like retirement, you can find a CD term that perfectly aligns with your plans.

Higher interest rates

Compared to regular savings accounts, CDs generally offer higher interest rates. With a higher interest rate, your money grows faster, allowing you to achieve your savings goals more efficiently.

 

Should I open a CD?

CDs are a great way to invest money you don’t need in the short term. Determining whether a CD is the right choice for you involves an honest assessment of your goals, risk tolerance, and needs for access to funds. Be sure to read the fine print carefully to understand the terms and conditions of any CD you are considering.

 

Maximize Your Savings with LCU!

If you’re ready to maximize your money and secure your financial future, consider opening a CD account with LCU! Still have questions whether it’s the right financial move for you? Give us a call or stop by one of our branches and we’ll talk through your financial goals and help you make the best decision for your financial journey.

 

 Click here to view our rates.

 

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