Not all CDs are Created Equal

posted 5/31/2018 in Banking

What is a CD?

CDs or Certificates of Deposit are a great way to save large sums of money for a designated period of time and are considered one of the safest ways to invest your money. If you choose to deposit your money into a CD, then it will stay there to ‘mature’ and earn interest.  While the money is in that CD, you are not able to withdraw freely, and if you choose to withdraw there will be a penalty fee. But, your CD account with Lincoln Savings Bank is FDIC insured, making these an easy and safe way to invest.

CDs haven’t been as popular lately due to low-interest rates but, these rates are finally taking a turn and giving the classic CD much more appeal. As with most investments, not having access to your deposit can feel like a gamble. But, your money has the benefit of a safety net and guaranteed growth when working for you in a CD.

Keep in mind that not all CDs are created equal

They require a minimum deposit, and the interest rate will vary based on that amount and the length of time the money will be invested. The money in the CD is locked until it reaches the age of maturity, and cannot be added to throughout its lifespan. Once the money reaches maturity, you can withdraw the entire amount of principal plus your earned interest, or transfer more money and renew that account again.

CD monies with Lincoln Savings Bank are *FDIC-insured up to $250,000, but LSB is also part of an elite group of community banks who participate in a program called Certificate of Deposit Account Registry Services (CDARS). CDARS provides FDIC protection on your CD money with LSB for amounts up to $50 million. This not only provides peace of mind but several additional benefits:

  • The Safety and Security of FDIC insurance protection on all your CD money
  • A consolidated monthly statement
  • A single 1099 at year end
  • The protection of the CDARS program (Learn more about the CDARS program by visiting the  CDARS website)
The theory behind CDs is that the longer a CD’s term, the more risk there is for the investor since they cannot withdraw. This is why longer CDs might have higher interest rates, resulting in more earned interest for its owner. Certain banks (like LSB) offer a special customized CD, fashioned around what rates and terms the customer is looking for rather than the standard bank terms. This can ultimately save the consumer the time it would normally take to compare CD options by creating their optimal CD.

Whether saving for retirement, emergency funds or college, LSB offers comprehensive solutions so customers are able to make educated decisions about their future.

Learn more about Customized CDs from Lincoln Savings Bank.

CD Special

*Amount of insurance coverage is subject to FDIC insurance coverage limits. For more information about FDIC insurance coverage of limits, visit

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