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 accounts.
- 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.
Concerned about FDIC coverage beyond $100,000? Ask us about the Certificate of Deposit Account Registry Service or CDARS. Using the CDARS service, you can access additional FDIC protection on your CD investments.
Here are just a few of the advantages of CDARS:
One Bank. You work with us—the bank you know and trust—to secure large deposits (from $10,000 to $30 million).
One Rate. You earn one interest rate on your CD Investments through CDARS. With CDARS, there is no need to negotiate multiple rates or manually tally disbursements for each CD.
One Statement. You receive one regular statement detailing your CD investments. You no longer need to consolidate statements at the end of each month, quarter or year.
No Fees. There are no hidden fees of any kind. We do not charge annual fees, subscription fees or transaction fees for using the CDARS service; the rate you see is the rate you get.
A Wide Variety of Maturities. You can select from various maturities—ranging from 4 weeks to 3 years (156 weeks)—and choose the terms that best suit your investment needs.
Community Investment. Your funds can support lending initiatives, including special development projects that strengthen the local community.*
For more information, please contact your nearest First Federal Bank Office or call 1-800-472-6292.
*Because funds are exchanged on a dollar-for-dollar basis with other banks in the network, we can use the full amount of deposits placed through CDARS for local lending, which may satisfy some depositors' local investment goals/mandates. Alternatively, with a depositor's consent, we may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending.
CDARS is a service mark of Promontory Interfinancial Network, LLC.
