When it comes to planning for your financial future, you have a lot of options. From long-term options like your 401(k) or quicker ROI’s like investing in your favorite IPO, there are many ways you can make your hard-earned money grow. With so many options, why choose to lock your money away in a CD? (Certificate of Deposit, in case you’re wondering). Do CDs still offer value?

Yes. Over the course of my banking career, I’ve seen a CD be the best option a family can choose to build their savings. Here’s why:

  1. Zero risk. Zero stress. Unlike the unpredictability of the stock market, a CD offers you the assurance that your money is growing without the risk of losing it. It is guaranteed by the FDIC (an arm of the US government) up to $250,000. This means your money is growing while you’re enjoying life and not worrying.
  2. Higher Interest Rates: Unlike traditional savings accounts, a CD typically provides a much higher, often double the interest rate. If you are saving for something specific anyway, like college tuition or home renovations, a CD makes you more money, faster.
  3. Sinking Funds: According to a new report from Bankrate nearly six in 10 Americans don’t have enough savings to cover a $500 or $1,000 unplanned expense. A CD helps you plan ahead for bigger expenditures and acts as a “sinking fund,” setting money away for the roof you know you’ll need in a year or the moving expenses you’ll face as your parent shifts to assisted living, and many other things you just can’t think of ahead of time.

I have invested in CDs a number of times myself, particularly when getting funds from relatives while in school. I got a higher rate than shorter term savings options, and locked away the funds, not to be touched until after graduating college, when I needed money for furnishing an apartment, a car, and other stuff.

And it just so happens we’ve recently launched a 13-month CD with 1.50% compound interest rate, 1.51% APY*. As a community bank, our mission is to do all we can to empower you with the best financial tools we can offer. As a Bronx-native, I have personal commitment to the financial inclusion and flourishing of this borough. All of us at Spring Bank do. We’d love to tell you more about why we care so much and about our 13-month CD special too. Feel free to call us at 718-879-5000 or email customerservice@springbankny.com to open your 13-Month CD today!

* APY (Annual Percentage Yield) The quoted APY is based on interest compounded daily. Rates subject to change at Spring Bank’s discretion.