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Certificates of Deposit

Certificates of Deposit

Why should you invest in a CD?

Here are a few reasons:

  1. FDIC insured- Regardless of market fluctuations the principal of your deposit is guaranteed, up to federal maximums (typically $250,000 for individuals).
  2. Stable interest rates over the term of the deposit. Most CDs come in the fixed-rate variety, but banks can offer variable-rate CDs, where interest is tied to the market, and adjustable-rate CDs that allow the consumer to adjust the rate of interest on the CD to match market trends.
  3. Low or no fees for the investment, although there is usually an interest penalty for early withdrawal of the deposit—in general, some percentage of the already accrued interest.
  4. Maturity dates allow for future planning: this is one of the main benefits of CDs. Depositors can match the term of the CD to future events, whether that’s a year down the road, or even a few years, such as a CD that would mature when a child enters college.
  5. Better than a traditional savings account that typically offers much lower interest.

What is a Certificate of Deposit?

A Certificate of Deposit (CD) is a certificate issued by a bank to a person depositing money for a specified length of time. It has a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from the minimum investment requirement. A CD restricts access to the funds until the maturity date of the investment.

American State Bank's Certificates of Deposit Policy

  • $1,000 minimum to open
  • Interest payment methods include: check, transfer or compounding
  • Maturities from 3 months to 5 years
  • All certificates are automatically renewable unless otherwise indicated. Interest rates and annual percentage yields vary with terms and will be disclosed at time of purchase
  • All accounts and certificates of deposit are subject to the bank's Deposit Account Agreement and Disclosure in effect. There may be additional charges and fees for services, as set forth in our Schedule of Service Charges and Fees.

Call or visit a location near you to get started today. Click here to find our current rate chart that contains information about interest rates and annual percentage yields for some of the accounts we offer.

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