A Certificate of Deposit account can be a smart way to save if you want to earn higher interest rates than a traditional savings account. Before you open one, knowing how to make the most of your CD savings is essential. Here's a guide to get you started!

Compare CD Account Rates and Terms

Compare CD account rates and their specific terms. CD terms can range anywhere from a few months to several years. Generally, the longer the term, the higher the interest rate. Consider how long you will leave your money untouched to maximize your returns.

Check Minimum Deposit Requirements

CD accounts usually come with a minimum deposit requirement. It’s essential to check this before opening an account. Some banks may require only a few hundred dollars, while others may need a larger initial deposit. Choose one that fits your budget and savings goals.

Benefits of CD Accounts

The most significant advantage of CD accounts is the higher interest rates compared to regular savings accounts. These rates can help your money grow quickly, especially when interest is compounded over time.

Understanding a Laddering Strategy

A laddering strategy involves opening multiple CDs with different maturity dates. This strategy allows you to access some of your funds periodically while still earning higher rates on the rest. It's a great way to balance liquidity and earning potential.

Consider Reinvesting Your Funds

Once your CD matures, reinvest the funds into a new CD to keep the growth going. This can help you take advantage of rising CD account rates and continually increase your savings.

Start Your Journey with Superior Credit Union

If you're in Toledo, Lima, or Cincinnati, OH, consider starting your savings journey with Superior Credit Union. We offer competitive CD account rates and excellent customer service to help you achieve your financial goals.

Ready to make your money work harder for you? Open a CD account today with Superior Credit Union and see the benefits!