Local Banks in Austin Texas 73301

[Bill Shoubless]

Get the best of both worlds—flexible terms and higher interest rates with our Certificate of Deposit accounts. Whether you’re investing for a few weeks or five years, this account can handle it. Come in to one of our locations or call us for various terms and rates. You can begin the application process for one of our standard CDs by using the Apply Now button.

• Interest-Bearing Account
• Minimum Opening Balance of $1,000
• Investment terms ranging from 7 days to 5 years
• May incur penalties for early withdrawal
• Online special is a 12 month CD with a rate of 2.30% (APY is 2.32%) and a minimum opening balance of $1,000

Certificates of deposit work much like common savings accounts, with the restriction that the money invested into the certificate is not to be withdrawn until the CD has reached its maturity. The maturity of a certificate of deposit is the point at which the amount of time that the CD was purchased for (also known as a term) has ended, and the CD no longer collects interest at the rate it previously was. Once a certificate of deposit has reached maturity, the full value of the CD can be withdrawn without penalty and the money is often transferred into other savings or into chequeing or money market accounts.

Maturity and Withdrawal

Since the money invested in a certificate of deposit will continue to draw a nice interest rate until the CD reaches maturity, it makes sense that you would be encouraged to keep your money in the certificate until maturity has been reached. Most banks and issuers of certificates of deposit don't want to be entirely unreasonable, however, and generally offer a brief period each year where the certificate can be cashed in before it reaches maturity without the usual penalties for early withdrawal. You should make sure that you know when this period is if you plan on cashing in your certificate beforehand, however... depending upon the issuer, some of the fines associated with withdrawal before maturity can be quite steep.

Choosing the Right Term for Your CD's

The term that you choose for your certificates of deposit will largely depend upon how long you want your money to draw interest before you need it. If you're planning on using CD's to plan for future events such as a wedding, additional schooling for your children, or retirement, you might want to consider a long-term certificate. If, on the other hand, you're wanting to use a certificate of deposit to set aside money for a vacation later in the year or another similar short-term circumstance, you don't want your money to be locked in a CD for an extended amount of time.

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Local Banks in Austin Texas 73301