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Start Saving with Bank CDs – Carthage Savings and Loan

Published: January 24, 2019

Growth Without Risk: Why CDs are a Great Savings Tool

Are you thinking about financial planning for the future? One of the best ways to do just that is with certificates of deposit (CDs). CDs function like a savings account, but with higher interest rates. That means you’ll end up with more money than you started with. For more information about CDs or to see how you can open one, visit your local Carthage Savings and Loan branch.

Understanding CDs

With a savings account, you can deposit and withdraw funds whenever you want to. CDs, however, are a one-time deposit and you can’t access the funds until the end of the term, which ranges from six months to six years. Customers at Carthage Savings get to select the term length that works best for them. For example, a couple looking to purchase a home in two years’ time might put away money for safekeeping in a CD.

Because the money in a CD is locked in, banks are able to offer higher fixed interest rates. By the time your CD has reached maturity, you’ll have accumulated more money than the amount you initially invested.

Benefits of Saving with CDs

Not only do CDs offer more growth than regular savings accounts, but they also provide several other benefits, including:

  • Security – CDs are backed by the Federal Deposit Insurance Corporation (FDIC), making them a safer investment than stocks or bonds.
  • Predictability – Because the interest rate is fixed and locked, you know exactly what to expect out of your CD. The rates aren’t subject to fluctuating market trends like they would be elsewhere.
  • No fees – At Carthage, our CDs don’t have setup or maintenance fees. All you have to do is make the minimum deposit. Early withdrawals may be subject to a penalties

With these guarantees, you can invest your money into a CD and enjoy peace of mind. When the term is up, you can use the money you saved to make a big purchase, like a house or car. Keep in mind that CDs do come with penalties if you withdraw the funds before the term is over, however, so it's important to commit to keeping your money in the CD until the specified date to see benefits.

Open Your CD Today

Whether it’s your first time opening a certificate of deposit or not, your local Carthage Savings and Loan branch can help guide you through the process. Stop by one of our three convenient locations – Carthage, Clayton and Watertown – to get more information and start investing your savings today.