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How Do Certificate of Deposit (CD) Accounts Work?

The information provided below does not, and is not intended to, constitute legal advice. All information, content, and materials available on this page are for general informational purposes only.

 

Let’s talk about the basics. What is a certificate of deposit account? Also referred to as a CD, a certificate of deposit account is a savings option that offers a consistent interest rate throughout the course of a certain number of months or years. Most CDs provide a higher interest rate than standard savings accounts because the customer commits to depositing the funds for a defined period of time.

This period of time is called the “term length.” The term length can range from six months to several years, depending on the account. If for some reason the account holder needs to withdraw funds from their CD account prior to the end of the term length, the withdrawal will likely incur a fee. It’s worth noting, account holders may be able to withdraw interest credited to the account at any time without penalty but not any of the principal amount. Ultimately, all terms are defined by the bank and account you are depositing your money into. We recommend consulting your financial institution for full details about your savings account.

Getting a Certificate of Deposit Account at Customers Bank

At Customers Bank, we’re proud to offer top-tier savings options to all of our clients, including certificate of deposit accounts. A Customers Bank CD account provides competitive, guaranteed returns and low minimum opening requirements. You can bank on the security of the fixed terms on your CDs from Customers Bank.

In particular, our Ascent CD Account provides interest on deposits that meet the minimum balance requirement. Interest will be compounded monthly and credited to the CD principal or a different account. 

We also offer other CD accounts with a variety of term lengths. Contact a Customers Bank Team Member or visit us online to learn more about all our options.

All products and services are subject to approval.