Certificates of Deposit
CDs are an important piece of your financial portfolio. They offer a safe way to invest your money while still earning interest. If you don't want to ride the stock market roller coaster with all of your hard earned cash, a CD could be a good fit for your financial goals.
Health Care Family Credit Union is currently offering a CD Special! You can purchase an 18-month CD and earn 2.52% APY*. IF you have been thinking about a CD, but weren't sure about rates, now is the time to act! Read on to see why a CD is an important piece of your financial portfolio.
Aren't Interest Rates Low on CDs?
Many years ago it was possible to live off of the interest your CDs earned. That time has passed and rates have moved with the markets to where they are today. While you may look at current rates and think that they won't pay very much, notice that they have increased quite a bit over the last year or so.
The best part about a CD is that it is a secure investment. As long as you are investing with an insured financial institution, you won't lose your money if the institution fails. It is also fairly safe to say that you won't lose any of your original investment into the CD should you need to access the funds early. There are early withdrawal penalties, and they can sometimes dip into the principal if you withdraw the funds early in the CDs term. Your investments in the stock market can result in a loss even if your actions don't cause a fee or penalty.
Purchasing a CD will help diversify your investment portfolio so that you have investments with higher and lower amounts of risk. Diversification is important so that one bad market turn won't bust all of your investments.
You can start a regular CD with as little as $1,000. Your other option is to start a Payroll Deduction CD. This means that an automatic transfer would be set up to deposit a set amount of funds into a CD every time you get paid. This is a great way to start saving and even to build an emergency fund.
Special rate and terms are often offered on CDs. These special rates can help you earn slightly more than the standard market rates at that given time!
*APR = Annual Percentage Yield. Promotional certificate of deposit is compounded quarterly. APY valid as of 7.18.18. $2,000 minimum deposit required for promotional APY. Early withdrawal penalties apply. Early withdrawal penalty is the previous two periods of interest, plus the interest that is due for the current period. Funds currently on deposit with Health Care Family Credit Union are not eligible for promotional rate. Health Care Family Credit Union is federally insured by the NCUA. Promotional rate valid through 8.31.18.