Not all CDs are Created Equal

February 16 2023

What is a CD?

CDs or Certificates of Deposit are a great way to save large sums of money for a designated period of time and are considered one of the safest ways to invest your money. If you choose to deposit money into a CD, it will stay there to ‘mature’ and earn interest.

CDs require a minimum deposit, and the interest rate will vary based on that amount and the length of time the money is invested. When you decide to purchase a CD, you are agreeing to keep your money invested in the bank for a certain number of months/years at a fixed or variable interest rate. At the end of that term, you will get back the initial investment plus the amount of interest you incurred over your selected time frame.

Your CD account with Lincoln Savings Bank is FDIC-insured which makes it a safe and easy way to invest so you can remain worry-free while it earns interest.

Benefits of a CD

Depositing money into a CD can offer many benefits to help you reach future financial goals. Some benefits of opening a CD at Lincoln Savings Bank include:

Choose certificate terms ranging from three months to five years
Earn interest at higher rates than those offered by most traditional savings accounts
Option to automatically renew your CD at maturity
Deposits insured by FDIC

Keep in mind that not all CDs are created equal

CD monies with Lincoln Savings Bank are *FDIC-insured up to $250,000, but LSB is also part of an elite group of community banks who participate in a program called Certificate of Deposit Account Registry Services (CDARS). CDARS provides FDIC protection on your CD money with LSB for amounts up to $50 million. This not only provides peace of mind but several additional benefits:

The Safety and Security of FDIC insurance protection on all your CD money
A consolidated monthly statement
A single 1099 at year end
The protection of the CDARS program (Learn more about the CDARS program by visiting the CDARS website)

The theory behind CDs is that the longer a CD’s term, the more risk there is for the investor since they cannot withdraw. This is why longer CDs might have higher interest rates, resulting in more earned interest for it's owner. Certain banks (like LSB) offer a special customized CD, fashioned around what rates and terms the customer is looking for rather than the standard bank terms. This can ultimately save the consumer the time it would normally take to compare CD options by creating their optimal CD.

Whether saving for retirement, emergency funds, or college, LSB offers comprehensive solutions so customers are able to make educated decisions about their financial future.

Learn more about customized CDs from Lincoln Savings Bank.

*Amount of insurance coverage is subject to FDIC insurance coverage limits. For more information about FDIC insurance coverage of limits, visit www.fdic.gov.