Certificates of Deposit (CDs) are a great way to manage your money when you are able to set funds aside for a period of time. You have the choice of locking in a guaranteed rate for a term as short as 3 months to a term as long as 5 years.
What are the benefits of CDs?
- Fixed-rate certificates guarantee your Annual Percentage Yield (APY) during the initial term of your CD.
- Your principal is insured safe up to the maximum amount permitted by law. Currently, this is $100,000 per depositor, but your total coverage may be greater depending upon the different categories of ownership for your account.
- You may also choose any First Federal fixed-term certificate as an investment vehicle for your retirement money.
- Early withdrawal penalties do apply when you withdraw funds before the CD maturity date. However, in certain circumstances such as the death or incompetence of an owner of this account, the law permits, or in some cases requires the waiver of the early withdrawal penalty.
