Certificate of Deposits (CDs) are increasing in popularity for individuals who have excess cash and want to earn a higher return while minimizing market risk. However, many individuals may not understand what a CD is and what they should know before opening one. First Savings Bank offers many CD options that fit individual needs based on one’s financial goals.

Think of a CD as a promise. You promise to leave a certain amount of money with the bank for a set period, and in return, the bank promises to pay you interest at a fixed rate. This rate is often higher than what you would expect with a regular savings account.

Why invest in a CD?

Let’s face it, we all want our money to grow. When you’re first starting out, it’s important to find a safe and reliable way to do this. Since CDs with First Savings are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) this offers you protection and peace of mind that your funds are growing.

How do CDs compete against other savings options?

There are many savings options for consumers. Savings accounts, money market accounts and CDs all have their pros and cons. Savings accounts are great for short term goals and emergencies but offer lower interest rates. Money market accounts are great for longer term savings with faster accessibility but often require higher minimum deposits.

CDs, on the other hand, lock in your money for a term set by you and offers a higher interest rate. If you need your money before the term is up, you might have to pay a penalty. It’s always best to choose the savings option that helps you achieve your financial goals. If you are unsure what is the best option for you, please discuss with a financial advisor or one of our friendly First Savings’ team members.

Investing in a CD can be a smart move if you want to earn more interest and don’t need immediate access to your funds. If you are ready to open yours today, give us a call to hear about our competitive rates! 1-877-372-4968

Online Banking Login

Personal Small Business Treasury Mgmt
Personal APP
Business APP
Treasury Mgmt App