If you're looking for a low-risk investment that can provide a higher interest rate than a traditional savings account, a bank CD might be worth considering.

Understanding CD's

When it comes to saving money, there are a lot of options to choose from. But if you're looking for a low-risk investment that can provide a higher interest rate than a traditional savings account, a bank CD might be worth considering. In this blog post, we'll dive into what bank CD's are, how they work, and how they compare to savings accounts. Plus, we'll take a look at some great rates and terms offered by Northview Bank.

Bank CD's, or certificates of deposit, are a type of savings account that pays a fixed interest rate over a set period of time. This period can range from a few months to several years, and the longer the term, the higher the interest rate will typically be. One of the biggest advantages of a CD is that it provides a guaranteed return on investment, making it a low-risk option for people who want to earn a little more interest than they would with a traditional savings account.

When you open a CD, you'll need to deposit a certain amount of money and choose a term length. During the term of the CD, you won't be able to withdraw your money without paying a penalty, which is why it's important to choose a term that aligns with your financial goals. If you don't think you'll need the money for a few years, a longer-term CD might be a better choice, since it will typically offer a higher interest rate.

How do CD rates compare to savings account rates? In general, CD rates will be higher than savings account rates, since you're committing to keep your money in the account for a longer period of time. However, it's also worth noting that CD rates can vary based on factors like the current market conditions and the individual bank's policies.

If you're interested in opening a CD, Northview Bank offers some great rates and terms. For example, as of this writing, their 19-month CD offers an interest rate of 5.10% APY*, which is higher than the national average. They also offer a variety of term lengths, ranging from 3 months to 4 years, so you can choose the option that works best for your financial situation.

One thing to keep in mind when choosing a CD is that you'll need to have the initial deposit amount available upfront. This can range from a few hundred dollars to several thousand, depending on the bank and the term length. If you don't have enough cash on hand, you might need to save up for a few months before opening a CD.

Overall, CD's can be a great option for people who want a low-risk investment with a higher interest rate than a traditional savings account. When choosing a CD, it's important to consider factors like the term length, interest rate, and initial deposit amount. If you're interested in opening a CD, be sure to check out the great rates and terms offered by Northview Bank.

*Annual percentage yield (APY). **Fees may reduce earnings. ***Penalties may be assessed for earlywithdrawal.  ****APY effective as of 11/03/2023.  $11,000 minimum daily balance to obtain 5.10% APY.  $1,000 minimum daily balance to obtain 4.84% APY.  Call for details.