A quick overview of CDs, then we’ll get to the good stuff. A certificate of deposit (CD) is a financial product similar to a savings account. A CD is distinct from a savings account in that the CD has a specific, fixed term and a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.
Got that? Okay, let’s get you connected to High-Yield Connect CDs. Bank5 Connect CDs have four terms, each with its own annual percentage yield (APY):
The minimum deposit for a Connect CD is only $500! And they’re FDIC Insured for up to $250,000 and DIF Insured for over $250,000, meaning 100% of deposits are insured in full!
Connect CDs are statement only, which means no passbooks (for anyone out there who remembers what a passbook is). And we do our very best to keep our fees low, but we want to be upfront about them – there's an early withdrawal penalty on a Connect CD of 3 months of interest for terms less than one year and 6 months of interest for terms greater than one year.
* APY – Annual percentage yield. $500 minimum deposit needed to open the account and obtain the APY. Penalty for early withdrawal. Rate may change at end of term. Fees may reduce earnings. APY accurate as of .
What are CDs? How are they used?
What types of CDs are available from Bank5 Connect?