At Telco Credit Union, we offer many financial services to members around Greenville, NC, Tarboro, NC, Rocky Mount, NC, and Eastern North Carolina. One such service we offer is certificates of deposit (CDs). What are CDs?
CDs are typically considered to be one of the safest ways to save your money. A certificate of deposit is a savings account that holds an established amount of money for a certain amount of time. For example, common fixed periods of time for CDs are six months, twelve months, eighteen months, and so on. In exchange for saving your money in this type of account, the issuing bank or credit union will pay interest on your account. Therefore, when you redeem your CD, you will receive your original investment plus interest.
Are there risks when you save your money in a CD? Of course; there are risks associated with all investments. Be sure to read your disclosure statement closely when you are considering saving your money in a CD. The statement should include the interest rate and state whether the rate is variable or fixed. The statement should also include information about when the bank or credit union will pay interest on the CD. For example, some banks and credit unions pay interest monthly or semi-annually. The statement should also include how the interest payment will be made, such as by check or a transfer of funds electronically. Pay close attention to the maturity date as well, which should be clearly stated on your disclosure statement. Finally, the biggest risk with investing your money in a CD is that inflation will grow faster than your money, which would decrease your real returns over a span of time.
Most customers purchase CDs directly from banks or credit unions, but there are firms and independent sellers that offer CDs. If you decide to look into purchasing a CD through a firm or an independent seller, known as “deposit brokers,” make sure they are associated with investment professionals. Anyone can claim to be a deposit broker, so you’ll want to ensure that the CD is from a trustworthy institution. It is wise to check the history of such deposit brokers at the SEC and FINRA’s online databases.
At Telco, we offer CDs with several key benefits. There is no fee, unless you withdrawal before the maturity date. We also offer a five day grace period for withdrawal, and interest is earned monthly. The requirements to purchase a CD through Telco include being a member of our Credit Union, completing a CD application, and depositing a minimum of $1,000. It’s that simple!
For all of your financial needs, contact Telco Credit Union. Whether you need more information or help with a problem concerning your accounts, service, or a product, you’ll find Telco Credit Union is always accessible to its members.