When it comes to saving and investing your money, Certificates of Deposit (CDs) stand out as a reliable option, offering the potential for growth balanced with stability and security. For individuals and business owners alike, CDs offer a simple, effective way to maximize your cash. This blog will explore the benefits of CDs as an investment tool and offer insights into how you can make the most of your money with First Independent Bank’s unique CD offerings.
Why Choose CDs?
Certificates of Deposit are a popular savings tool for those looking for security and predictable returns. Unlike a traditional savings account, where interest rates are relatively low, CDs offer higher rates in exchange for keeping your money locked-in for a set period of time. This makes CDs a great choice for savers who want to grow their funds without the risk of market volatility.
At First Independent Bank (FIB), our CDs come with unique features designed to help you grow your money faster and with more flexibility than you’ll find at other banks. Variable rates and options to withdraw and deposit funds during the term are a few of these unique benefits First Independent Bank offers. Whether you’re an individual planning for future expenses or a business owner looking to invest surplus cash, our 24-month and 7-month CDs are tailored to your needs.
Benefits of First Independent Bank’s CD Options
The 24-Month CD: Long-Term Growth with Flexibility
If you're seeking a longer-term savings option that offers both growth and security, the 24-month CD is an ideal choice. With a competitive interest rate or 4.85% and Annual Percentage Yield (APY) of 4.94%, this CD allows your money to work harder over time. And while many CDs lock you into a fixed rate, our 24-month CD offers a variable rate with a guaranteed floor. This means your earnings can increase if interest rates rise, but you’re also protected from rates falling below a certain level, giving you the best of both worlds.
The 7-Month CD: Short-Term Savings with Quick Returns
For those with shorter-term savings goals, such as saving for a family vacation, a down payment, or a large upcoming purchase, the 7-month CD offers an excellent balance of accessibility and growth. With a 4.42% interest rate and a 4.50% APY, this CD ensures that your money grows in a short timeframe, while still providing a higher return than a standard savings account.
Tips for Maximizing Your Money with CDs
- Align CDs with Your Financial Goals: Whether you’re planning for a major purchase or simply building up an emergency fund, choose the CD that fits your timeline. The 7-month CD is perfect for short-term goals, while the 24-month CD works best for longer-term savings.
- Take Advantage of Unique Features: FIB’s 24-month CD stands out with its flexibility. Use the one-time withdrawal feature if the need arises, to access a portion of your funds. Additionally, consider using the one-time deposit option to increase your savings over the term. These features are designed to give you the control and peace of mind that many standard CDs do not.
- Plan for the Long Term with Confidence: CDs are often viewed as a "set it and forget it" savings tool, but FIB’s variable-rate 24-month CD gives you room to grow if interest rates increase. This unique feature allows your savings to take advantage of improving market conditions, so you won’t miss out on potential gains while still enjoying the stability of a floor rate.
- Keep Your Savings Secure with FDIC Insurance: Like all FIB savings products, our CDs are backed by FDIC insurance, ensuring that your money is safe and secure, no matter what happens in the market.
Why Choose First Independent Bank?
At First Independent Bank, we’re more than just your local bank—we’re your neighbors. Our focus on the needs of individuals and businesses across Minnesota allows us to offer personalized service. We understand the importance of flexibility, especially for farmers, business owners, and families who need both security and accessibility.
Our CD products are designed with you in mind, providing competitive rates and unique features that help you maximize your savings and make the most of your money. Whether you’re saving for a big purchase, planning for future expenses, or simply building your financial cushion, we’re here to help you grow your money with confidence and achieve your financial goals.
*Annual Percentage Yield is accurate as of 9/30/2024 and is subject to change.