Back to Blog

What is a CD?

A Certificate of Deposit, or CD, is one of the safest, easiest and most trusted solutions to saving. They are one of the most common ways to grow your money and save for the future. CD accounts provide typically a higher interest rate compared to standard savings accounts. However, there is a catch with a CD account, the customer agrees to leave their lump-sum deposit untouched for a specified term. You cannot withdraw from this account prior to the maturity date without a penalty.

It’s easy to open a CD account, just like any checking or savings account. The main difference comes when agreeing to the terms of your account. Your interest rate is locked in for the term of your account which can vary from 3 months to 60 months. The term specifies the length of time that you agree to leave your money untouched in the account. You are free to withdraw your money penalty-free on the maturity date when the term of the account ends.

CD accounts are one of the safest options for saving and are protected by the Federal Deposit Insurance Corporation (FDIC).

Freedom Bank offers the ability to open CD accounts online or in-branch at one of our five locations. Stop by or call 201-599-3000 to speak to a representative about opening an account today.