The basics of a certificate of deposit


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Discover the benefit of earning more interest by investing in a certificate of deposit.

What is a CD?

One of the safest ways to grow your cash is by investing in a certificate of deposit (CD). These accounts allow you to earn more interest than a standard savings account without putting your money at risk. Here are answers to common questions about CDs.

How do CDs work? What are the benefits of a CD?
The biggest benefit of a CD is that it’s a way to invest without taking big risks.

Essentially, you make a deposit and agree not to touch that money for certain amount of time; this could be from six months to five years. In return for having use of your money for the term of the CD, the credit union or bank issuing the CD will pay you a higher interest rate than a standard savings account.

How much interest can I earn?

CD interest depends on two variables:

  • how much you deposit
  • how long until the CD matures

The more you deposit in a CD and the longer the term, the higher the interest rate you’ll get. The rate will remain the same for the life of the CD. Typically, the longer the term, the better the interest rate.

No matter how much you save, or for how long, interest compounds monthly so you’ll earn interest on your interest! Click here for the most current rates.

Do I need a lot of money to get a CD?

At Consumers, you can invest in a CD for as little as $1,000.

How is a CD different from a savings account?

With a savings account, you can access your cash at any time. With a CD, your money is unavailable to spend for the term of the CD.

What if I need to access my money before the CD matures?

You may withdraw CD funds before the maturity date, however, you will usually incur a penalty fee that can be significant. (Note: Some CD terms allow you to withdraw funds one time without penalty.)

Early withdrawal penalties are the primary reason you want to make sure that funds you put into CDs are not funds you’ll need to access in the short term.

Are there any fees?

There are no fees to invest in a CD.

What happens when my CD matures?

Thirty days before your CD matures, we’ll send you a notice. You can decide to renew your CD, withdraw the funds or transfer them to another account at maturity.

Is my money safe?
Consumers is federally insured by the National Credit Union Association (NCUA), so we offer a safe place for you to save your money. As a member, your deposits are insured up to at least $250,000. Additional coverage may be accessible if you have more on deposit.

How do I open a CD at Consumers?

Opening a CD at Consumers is easy! Just stop by one of our offices or get started online.

Do you have CD questions? Talk to one of our knowledgeable member service professionals at 800.991.2221. If you’re ready to invest in a CD, get started here.

Federally insured by NCUA

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