Why Choose a Cincinnati CD over Traditional Savings Accounts?
If you are looking to save money, you should consider your options beyond traditional savings accounts. For example, there are a variety of benefits Cincinnati CDs can provide that savings accounts can’t. Depending on your savings goal, a CD may be the perfect choice for you.
How Does a Certificate of Deposit Work?
Certificates of deposit perform similarly to savings accounts, but require setting a timetable to earn higher interest. CDs call for a time commitment to mature on a lump-sum deposit, leaving the money to sit untouched for a specified period of time and gain interest in an Annual Percentage Yield, or APY. Depositors face a penalty if they withdraw money from the account before it matures.
Cincinnati CDs Help You Save
For savers that have a hard time leaving their money alone, CDs may be a helpful hand to give your money a chance to grow. Early withdrawal penalties discourage dipping into your fund, therefore giving you a greater chance at earned interest.
Additionally, a CD generally offers higher interest than a regular savings account. This is especially true of longer-term accounts, as the longer your CD term, the higher the rate it earns.
Certificates of deposit can be obtained from local Cincinnati banks or credit unions. To get the best interest rate on your account, it’s important to research different plans and continue to shop CD rates at the conclusion of each term.
Choosing the Best Term Length
Since the longer the CD term, the more interest gained, look to lengthen the time interval to the most you can afford. Tiers of interest rates are available in months or years, with a 3 or 6 month CD offering much lower interest rates than a 2-year commitment. Consider the following differences in APY between a 6-month and 2-year CD term:
Highest 6-month CD Rates in Cincinnati
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Best 2-year Cincinnati CD Rates
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The above rates are accurate as of 9/14/11, but may change at any time in the future. Before opening an account, check with the individual financial institution to verify rates.