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Learn The Longterm Benefits of CD Accounts | VCNB

What Is A Certificate of Deposit? Think of a Certificate of Deposit (CD) as a safe place to earn interest while saving for a long term goal. You stash your money away for a set time and the bank rewards you with a better interest rate than a regular savings account. The catch is that you can't touch that money without a penalty until the time is up. This turns out to be a good thing for many customers who need help avoiding spending temptation while they work toward their goals. If this sounds like you, a CD may be the perfect fit!

Guaranteed Growth

The standout feature of a CD is its predictability. When you open a CD, you lock in an interest rate for the duration of its term. Your term can last for as little as a few months or as much as several years. This rate often exceeds what you would earn with a regular savings account. Knowing exactly how much interest you'll earn throughout the life of a CD makes it a reliable component of your savings strategy.

Safety First

A CD locks in an interest rate for a set period of time, meaning you know exactly how much your money will grow. In other words, a CD is a reliable way to boost your savings for future goals. Plus, it is insured by the FDIC for up to $250,000, giving some peace of mind that cannot be found in higher risk investment environments.

Building a Ladder

Want the best of both worlds with a CD? Try laddering!  Here's how it works: Imagine you divide your savings into a few CDs with different maturity dates like rungs on a ladder.  Every few months, one "rung" matures and you can reinvest that money in a new CD, taking advantage of current rates. This may give you the opportunity to earn more interest as rates change and is a flexible way to save for your goals.

How VCNB Can Elevate Your CD Strategy

At Vinton County National Bank, we’re all about finding the best fit for your financial goals. Dive into the benefits of a Certificate of Deposit account or talk to a banker about how our CD options can best serve you. Whether you’re saving for a specific goal or building a diversified savings portfolio, we would love to see you at one of our branches. Our team is ready to help you craft a CD strategy that aligns with your long-term financial vision, combining safety, growth, and flexibility.



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