When it comes to securing your financial future, there’s something reassuring about knowing your money is working hard for you, especially in today’s ever-changing economic landscape. One of the most effective tools for growing your savings with minimal risk is the Certificate of Deposit (CD), a time-honored investment option that offers a solid return with the safety net of FDIC insurance.
At First Independent Bank, we’re proud to offer a wide variety of CD products with some extremely unique benefits. These CD offerings not only help you maximize your savings but also provide features designed with your specific needs in mind.
What Makes Certificates of Deposit a Smart Choice?
For residents in rural Minnesota, CDs offer a reliable way to grow your savings without the volatility of the stock market and other investment products. A CD is a type of savings account that holds a fixed amount of money for a fixed period, and in return, the bank pays you interest. Unlike a regular savings account, a CD typically offers higher interest rates, which means your money can grow faster over time.
But what truly sets CDs apart is their predictability. Once you lock in a rate, you know exactly how much your savings will grow by the end of the term. This makes CDs an ideal option for those who prefer a low-risk investment or want to earmark funds for a specific future goal, like buying a new piece of farm equipment, funding a college education, or even planning for retirement. Fixed rates, while great for consistency, can also be a constraint when interest rates increase and you miss out on extra returns.
Explore FIB’s Unique CD Offerings
At First Independent Bank, we know that the needs of our community are as diverse as the landscapes we serve. So we’ve designed two unique products that offer flexibility and benefits tailored to fit your financial journey.
1. The 24-Month CD: Flexibility and Growth in One Package
Our 24-month CD is more than just a savings tool; it’s a versatile investment designed to adapt to your changing needs. With a minimum deposit of $25,000, you can take advantage of a competitive 5.35% interest rate (with an Annual Percentage Yield of 5.46%*). But what makes this CD truly distinct is the flexibility it offers.
- One-Time, Penalty-Free Withdrawal: Life can be unpredictable, and sometimes, you need access to your funds. Our 24-month CD allows a one-time, penalty-free withdrawal of up to 50% of the original balance. This feature gives you the peace of mind of knowing that your money is accessible if you need it, without sacrificing all of your earned interest.
- One-Time Additional Deposit: If you’d like to increase your investment, you can make a one-time additional deposit of at least $1,000 during the term. This allows you to grow your savings even more, without having to open a new account.
- Variable Rate with a Safety Net: While most CDs lock you into a fixed rate, our 24-month CD offers a variable interest rate with a guaranteed floor. This means, unlike typical CDs, your earnings can increase if market rates go up, but you’re also protected from rates dropping too low.
2. The 7-Month CD: Short-Term Savings with Competitive Returns
For those who prefer a shorter-term commitment, our 7-month CD offers a great balance between accessibility and growth. With a minimum deposit of $2,500, you can benefit from a solid 4.42% interest rate (with an Annual Percentage Yield of 4.50%*). This CD is perfect for those looking to achieve their financial goals in a shorter timeframe, whether it’s saving for a down payment on land, preparing for seasonal expenses, or simply building up an emergency fund.
Why Choose First Independent Bank?
Choosing where to invest your money is just as important as the investment itself. At First Independent Bank, we’re more than just a financial institution; we’re a part of the community. We understand the unique challenges and opportunities that come with living in rural Minnesota, and we’re committed to helping our neighbors achieve their financial goals.
Our CDs are backed by FDIC insurance, providing you with the security and peace of mind that your savings are protected. Plus, our local roots mean we’re big enough to offer competitive products, and small enough to provide tailored services.
Start Growing Your Savings Today
First Independent Bank is here to help you make the most of your money, whether you’re a seasoned pro or exploring new investment opportunities. Visit one of our branches or contact us today to learn more about our 24-month and 7-month CDs and how they can fit into your financial plan. With First Independent Bank, your savings are in good hands—because we’re not just your bank; we’re your neighbors, and we’re dedicated to helping you thrive.
*Annual Percentage Yield is accurate as of 8/01/2024 and is subject to change.