Secure your savings rate with a fixed rate High-Yield CD.
- Only $100 to open
- No monthly fee
- FDIC Insured
- Optional automatic renewal
- Ability to withdraw interest earnings during the term without penalty.
Fees may reduce earnings.
The only charge on any CD is if you withdraw from the principal balance before the maturity date. This is called an early withdrawal penalty. There is no charge or penalty for withdrawing the interest earned during term.
Early Withdrawal Penalties vary and are based on the term of your CD:
- Less than 12 months - 3 month interest
- 12 to 60 months - 6 months interest
- Over 60 months to 7 years - 12 months interest
Can I choose to have the interest deposited to another account?
Yes. You have the option of having the interest deposited back into the CD or to have it deposited to another account with Cashmere Valley Bank. Interest withdrawals are not penalized.
What happens at maturity?
When you open your account you have the option to have the CD auto-renew or not. If you choose automatic renewal you will be notified by mail of the new effective rate and the APY and be given 9 calendar days after the original maturity date to opt-out of the renewal. If you choose not to auto-renew you may choose to have the balance automatically transferred into another account, or have a check mailed to you.
Do I earn interest during the grace period after maturity?
For those who choose automatic renewal, there is a 9 day grace period after the original maturity date which you have the opportunity to opt-out of the automatic renewal. If you do not opt-out and the CD does renew for another term, you will receive interest during the grace period. If, however, you do choose to not renew the CD then you will not receive accrued interest during the grace period.
Why is there a difference between the Interest Rate and the APY?
The APY, or annual percentage yield, is an annualized rate of return that accounts for compounding interest. The Interest Rate is an annualized rate of return that does not account for the affect of compounding interest. The Interest Rate is the annual rate of return you would receive if you withdrew your interest earnings every period rather than chose to add them back into the CD.
What is the compounding period?
Interest earnings are compounded and paid quarterly based on the daily balance for the period.
Why is there a penalty for withdrawing money before maturity?
A Time Certificate of Deposit provides customers with a competitive, high-yield, rate of interest on funds invested for specific periods of time.