Bump your rate one-time during the term.
High Yield CD Rate
- Only $100 to open
- If you see that our 24-month rate has gone up after opening your CD, you can call to request that we increase the rate to the current higher rate one time during the term.
- 24-month fixed rate term.
- Optional automatic renewal.
- Ability to withdraw interest earnings during the term without penalty.
(Rates may change after account opening. Fees may reduce earnings.)
There are no monthly fees associated with any of our CDs. 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. The early withdrawal penalty for the Rising Rate CD is 6 months interest on the amount withdrawn. There is no charge or penalty for withdrawing the interest earned during term.
How do I raise my rate?
If you notice that our 24-month rate has gone up since you first opened your CD, simply call any one of our branch locations and request that we raise your rate to the current rate. You made do this one time during each term of your CD.
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 effect 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?
CDs are intended to be low-maintenance accounts that serve as a conservative investment alternative for our customers’ idle money. CDs are not intended to be transaction accounts. Frankly put, early withdrawal penalties exist to preserve the low-maintenance intention of the account.