Guaranteed growth for your future.
Customers Bank Certificates of Deposit (CDs) offer a secure way to grow your savings with fixed interest rates over specific terms. They are FDIC-insured, providing guaranteed returns and a predictable path to achieving your financial objectives, from short-term goals to long-range planning.
A Certificate of Deposit (CD) is a type of savings account that holds a fixed amount of money for a fixed period of time, and in return, the issuing bank pays you interest. Unlike a regular savings account, you agree not to withdraw the funds for a predetermined term, which can range from a few months to several years. This agreement allows Customers Bank to offer a higher interest rate than typical savings accounts.
When you open a CD with Customers Bank, you are essentially making a time deposit. The interest rate is set at the time of deposit and remains constant throughout the CD's term, regardless of market fluctuations. This predictability makes CDs an attractive option for savers who want to know exactly how much their money will earn over a specific period. It's a straightforward way to plan for future financial needs without the volatility associated with other investment types.
CDs are distinct from other deposit accounts because of their fixed terms and interest rates. The principal amount you deposit is held by Customers Bank for the agreed-upon duration, and interest accrues over that time. Upon maturity, you can typically withdraw your principal and accumulated interest, or you can choose to renew your CD for another term, potentially at a different rate depending on current market conditions. Learn more about how CDs work at Investor.gov.
Opting for a Certificate of Deposit with Customers Bank provides several distinct advantages for your savings strategy. One of the primary benefits is the guaranteed return on your investment. Once you open a CD, the interest rate is locked in for the entire term, ensuring you know precisely how much your savings will grow. This eliminates uncertainty and allows for clear financial planning, whether you're saving for a down payment, retirement, or another significant life event.
Customers Bank offers competitive CD rates designed to help your money work harder for you. We regularly review our rates to ensure they provide value in the current market, allowing you to maximize your earnings while maintaining security. Furthermore, all Customers Bank Certificates of Deposit are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum legal limit. This means your principal and accrued interest are protected, providing an extra layer of security and peace of mind for your deposits.
Customers Bank understands that different financial goals require different timelines. That's why we offer a variety of CD terms to suit your individual needs, ranging from short-term options to longer-term commitments. Whether you need access to your funds in a year or are planning for a decade down the line, we have a CD term that can align with your specific objectives. Our terms typically span from a few months to several years, providing flexibility for various savings horizons.
"Diversifying your savings across different CD maturities, known as CD laddering, can help manage interest rate risk and provide periodic access to funds."
The interest rates for Customers Bank CDs are determined by several factors, primarily the chosen term length and current market conditions. Generally, longer CD terms tend to offer higher interest rates, as you are committing your funds for a greater period. However, we also offer attractive rates on shorter terms for those who need more liquidity sooner. Our rates are transparently communicated, allowing you to make an informed decision about the best fit for your savings. You can discuss current rates with a Customers Bank representative to find the option that best suits your financial plan.
Integrating Certificates of Deposit into your overall savings strategy can provide stability and predictability, particularly when aiming for specific financial goals. For instance, if you're saving for a future expense like a down payment on a home, a child's education, or a significant purchase, a Customers Bank CD can help you reach that target with a guaranteed return. By locking in an interest rate, you can accurately project your savings growth over the CD's term.
CDs are also an excellent tool for diversifying your savings. While they may not offer the same growth potential as some market-based investments, their low-risk nature and guaranteed returns provide a solid foundation for your financial portfolio. Many individuals use a strategy called "CD laddering," where they open multiple CDs with staggered maturity dates. This approach allows for periodic access to funds as each CD matures, while still benefiting from potentially higher rates associated with longer terms.
Consider using Customers Bank CDs for funds you don't need immediate access to but want to protect from market volatility. They are particularly suitable for conservative savers or those approaching retirement who prioritize capital preservation and consistent income over aggressive growth. By allocating a portion of your savings to CDs, you create a balanced approach that combines security with steady interest earnings.
Opening a Certificate of Deposit account with Customers Bank is a straightforward process designed for your convenience. Our team is ready to guide you through each step, ensuring you select the CD term and rate that best fits your financial objectives. You can begin by visiting one of our local branches or contacting us directly to speak with a banking specialist.
Once your Customers Bank CD is opened, you will receive regular statements detailing your interest earnings and account balance. Our team is always available to answer any questions you may have throughout the term of your CD.
Understanding the details of Certificates of Deposit is important for making informed financial decisions. Here are some common questions about Customers Bank CDs:
| CD Feature | Customers Bank CD | Traditional Savings Account | Money Market Account |
|---|---|---|---|
| Interest Rate | Fixed for term, generally higher than savings | Variable, typically lower | Variable, can be higher than savings |
| Access to Funds | Limited; penalties for early withdrawal | Unlimited, immediate access | Limited transactions per month |
| Term Length | Specific, pre-determined (e.g., 6 months, 1 year, 5 years) | None, funds are always accessible | None, funds are always accessible |
| FDIC Insured | Yes, up to applicable limits | Yes, up to applicable limits | Yes, up to applicable limits |
| Risk Level | Very low; principal and interest guaranteed | Very low | Very low |
When your Customers Bank CD reaches its maturity date, you typically have a grace period (often 7-10 days) to decide what to do with your funds. You can choose to withdraw the principal and earned interest, renew the CD for another term (potentially at a new rate), or transfer the funds to another Customers Bank account. We will notify you before your CD matures to ensure you have ample time to make a decision.
Yes, Customers Bank CDs are designed for funds you don't need immediate access to. If you withdraw funds before the CD's maturity date, an early withdrawal penalty will generally be applied. The penalty amount can vary depending on the original term of the CD and the amount withdrawn. We recommend reviewing the specific terms and conditions of your CD agreement for full details.
Interest on Customers Bank Certificates of Deposit can be paid in several ways, depending on your preference and the CD's terms. Options often include compounding interest back into the CD to maximize growth, or having interest paid out directly to another Customers Bank checking or savings account on a monthly, quarterly, or annual basis. You can discuss these payout options when opening your CD.
Generally, Customers Bank Certificates of Deposit are funded with a single deposit at the time of opening. You cannot typically add more money to an existing CD during its term. If you wish to deposit additional funds into a CD, you would usually need to open a new CD account. This ensures the fixed interest rate applies to the original principal for the entire term.
The minimum deposit required to open a Customers Bank Certificate of Deposit can vary depending on the specific CD product and term length. We offer various options to accommodate different savings amounts. Please contact a Customers Bank representative or visit our website for current minimum deposit requirements for our available CD products.
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