Denver credit union has different products, and a certificate of deposit (CD) is one of them. It is a savings product where the depositor agrees to commit a certain amount of money for a set term. In return, they get to enjoy a fixed interest rate. You can choose to withdraw the funds before the agreed period is exhausted, but that usually comes with penalties and shouldn’t be an option. The term can run for any amount of time the depositor finds most comfortable. IT could run for 3 – 6 months or even a year. You can either set your CD terms in months or years and depends on the rate you’re looking for, your goals, and what you intend to use the money for.
The economy is unpredictable, and there are chances that interest rates will go up. In such a situation, it is best not to choose a long-term CD. However, if the rates are plunging, then you should lock your money in for a long time at a reasonable interest rate. Although CDs have been a mainstay to support both retirees and savers for years, there are risks to watch out for. The most important of all is the inflation issue. There is a chance of inflation running higher than the CD’s returns; this renders the money stored in a CD valueless. This problem is primarily found in long-term CDs, which you opened in a low-interest rate situation.
CD Account Interest Rates
Denver credit union offers savers higher earnings with a choice of different maturity terms. This option is to help promote innovative banking and make the process easier for savers and retirees. You can even choose to put your savings into different terms so your money can mature at different times. The goal is to ensure savers succeed financially, and Denver credit union provides excellent interest rates to assist you on that financial journey.
Although CDs are less popular in recent years, it is still a safe spot for investors to stash some of their future use savings. The best part about credit unions is that they offer better interest rates than a branch-based bank. The minimum amount a saver can open a certificate of deposit with and earn interest is $500. Below are the different terms and the Annual percentage rate and yield offered by Denver credit union with varying maturity periods.
|Term||Annual Percentage Rate (APR)||Annual Percentage Yield (APY)|