Certificates of Deposit (CDs)

The answer depends on your personal investment goals, but in general, CDs are a low-risk way to earn a fixed rate of interest. Certificates of deposit accounts typically earn better interest than savings accounts, especially when you choose CDs with the longest terms, such as 60 months. If you have funds that you will not need to access during the term length, CDs can offer excellent rates of return on your initial investment.

From the time you open and fund your SCCU CD, your initial investment will be protected for the full term length, and it will also be insured by the National Credit Union Administration (NCUA). There may be penalties for withdrawing funds prior to the CD's maturity date, which may result in you foregoing earning some interest, and a possible loss to your principal investment amount can occur.

There's no single answer, but when a CD matures—or reaches the end of its specified term length—you may have to pay income tax on the amount of interest that you earned on the CD. For information on your individual tax obligation related to the interest income you receive from a CD, consult your tax advisor or financial planner.

Credit union CD rates are among the most competitive CD rates available. Review SCCU's latest CD rates, or contact us for more information on today's rates. If you're ready to open an SCCU CD account, visit one of our conveniently located branches near you or give us a call.

• Brevard: 321-752-2222
• Broward: 954-704-5000
• Miami-Dade: 305-882-5000
• All other areas: 800-447-7228

To open your SCCU CD account, just stop one of our branches, conveniently located throughout Florida. If you have questions about our CDs, give us a call:

• Brevard: 321-752-2222
• Broward: 954-704-5000
• Miami-Dade: 305-882-5000
• All other areas: 800-447-7228

A certificate of deposit (CD) is a form of savings account. One of the features of a CD that makes it different from most other types of savings accounts is that it has a maturity date, or a specified date of withdrawal. It also has a fixed interest rate for the term of the deposit. Banks, credit unions and other financial institutions offer CDs, which are insured by the Federal Deposit Insurance Corporation (FDIC) at banks and by the National Credit Union Administration (NCUA) at credit unions.

At the time you open a CD, you select the term, or length of time you commit to keeping your money in the account without withdrawing any funds from it. Terms vary from one financial institution to another, but typically, the longer the CD term, the higher the interest rate and annual percentage yield (APY). At SCCU, we offer terms from just three months to 60 months with some of the highest CD rates available.

One of the most important benefits of investing in a certificate of deposit is that you get to select the length, or term, of your CD. At SCCU, you have a wide range of choices from 3 to 60 months. The term length is often included when referring to a particular CD, such as a "12-month CD."

A CD is one of the safest investments available. At SCCU, our CD accounts include a guarantee from the National Credit Union Administration (NCUA) that your money is federally insured. CDs are an excellent way to protect your original investment while earning a fixed interest rate on your money.

As with any type of investment, a certificate of deposit has its advantages and disadvantages. Your individual investment goals will determine whether a CD is right for you, but in general, there are a few things to consider:

• Unlike a savings account, there may be penalties for withdrawing money from your CD account before it reaches its predetermined maturity date.
• The interest rate on a CD is fixed when it is opened, so if interest rates become more favorable during the CD's term length, you would not be able to change your CD rate to a higher one.

Upon a CD's maturity date—the date on which you can take your funds out of a CD without incurring any early withdrawal penalties—you will have a few choices:

• You can allow the CD to roll over, or renew. Your money will go back into another CD at the same term length you chose when you first opened it.
• You can choose to put your money into a CD with a different term length, which will also have a different annual percentage yield (APY).
• You can move your money into another account, such as your SCCU Share Savings Account, SCCU Individual Retirement Account (IRA), SCCU Money Market Savings Account, or your SCCU Free or Interest Checking Account.

Whatever you choose to do with the funds in a matured CD, be sure to check the most recent interest rates on the various types of accounts available. Please feel free to visit your nearest SCCU branch location or contact us for the most up to date information.

Money market accounts and certificates of deposit are both popular investment strategies, and many investors choose to have both types of accounts since each has its advantages. They also have their differences in yields, terms, restrictions and more. When choosing which type of investment is right for you, here are a few things to consider:

• CD interest rates are typically higher than money market account interest rates.
• A money market account is more liquid, meaning you can withdraw funds from it without penalties. CDs, on the other hand, usually include some type of penalty for withdrawing funds prior to the CD's maturity date.
• Depending upon your unique situation, you may want to keep funds you need easier access to in a money market account, and use a CD to earn interest on funds that you plan to leave untouched for a long period of time. Consult your investment advisor for guidance on the strategy that's right for you.