A certificate of deposit (CD) is a type of savings account you can open at most banks, including Mid Penn Bank. In exchange for depositing a lump sum of money, which must be left untouched for a predetermined period, customers receive a fixed interest rate. This interest rate is higher than that of a regular savings account.
What Are the Benefits of CDs?
The main benefit of a CD is that it has a higher interest rate than a traditional savings account. You can use a certificate of deposit in conjunction with another savings account. Unlike a standard savings account, a CD comes with a term length during which you cannot withdraw money without paying a fee. However, you can earn more money with a CD.
Bank CD rates vary depending on a few factors, including the term length of your account. Longer-term lengths come with higher interest rates. This means that the longer you commit to keeping your money in the bank, the more money you can earn.
Another major benefit of CDs is that they are among the safest investment opportunities available. Your interest rate is fixed and guaranteed, so you don’t have to worry about losing out due to fluctuations in the stock market. When you open your account, you’ll know exactly how much money will be in it at the end of the term.
Smart Investing with Certificates of Deposit
If you’re looking for an investment with a fixed rate of return, consider how a Certificate of Deposit may be the right choice for you:
- Terms range from 3 months to 10 years.
- Automatic renewal is available.
- FDIC insurance covers deposits up to $250,000.
Who Should Open a Certificate of Deposit?
Certificates of deposit are ideal for customers with long-term savings goals. If you already have savings that you don’t need to use for a while, a CD may be an ideal way for you to set that money aside while allowing it to grow.
CDs are also a useful way to set aside funds for a future expense.
Irrevocable Burial Reserve
An Irrevocable Burial Reserve is an interest bearing account, typically a CD, established for the sole purpose of paying burial expenses. Mid Penn Bank does issue this type of CD. Here’s what you need to know about Irrevocable Burial Reserves:
- Irrevocable Burial Reserves require an easy one-time deposit as low as $500.
- You may choose a CD with a 3-year to 10-year term. The CD interest rate at the time of purchase is fixed and will earn that rate until maturity.
- Funds are payable directly to the funeral home.
An Irrevocable Burial Reserve is just one example of the peace of mind many customers gain when opening a certificate of deposit.
Visit Mid Penn Bank to Learn More
For more information about CD rates, contact us. Our representatives would be happy to discuss the common interest rates of bank certificates in PA to help you decide whether a CD is a good fit for your savings goals.