Certificates of Deposit

Certificates of Deposit (CDs)

Liquidity of funds is inversely related to interest earned; the longer the term, the greater the return

Guaranteed return on investment
Requires minimum deposit, amount may vary with term, interest rate
Wide variety of terms, ranging from 6 months to 5 years
Penalties charged for early withdrawal of funds
Federally insured by National Credit Union Administration (NCUA) up to $250,000
Additional private insurance coverage from Excess Share Insurance (ESI) of up to $250,000 per member, for total coverage up to $500,000