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Understanding Certificates of Deposit

A certificate of deposit (CD) is a deposit account with a stated term. Before opening one, make sure the time frame, rate, and access rules work for the money you plan to set aside.

Compare the terms

Term length and maturity date.
Annual percentage yield and how interest is calculated or paid.
Minimum deposit and any balance tiers.
Early withdrawal penalties and automatic renewal terms.

Plan for access

Funds in a CD may be subject to a penalty or other restrictions if withdrawn before maturity. Keep money for near-term expenses in an account that offers suitable access, and avoid committing funds you may need before the term ends.

Review coverage and disclosures

Deposit insurance eligibility and limits depend on the institution, ownership category, and how deposits are held. Confirm coverage through official resources and review the institution’s current account disclosures. Rates and terms vary and can change.

See Noven CreditUnion’s money market and CD information for current availability and terms.