What is a Certificate of Deposit (CD)?
A Certificate of Deposit of Deposit (CD) is an FDIC-insured savings account that earns a fixed interest rate in exchange for keeping your funds on deposit for a set period of time. CDs typically pay higher rates than standard savings accounts. Peoples Bank offers CDs with terms from 3 to 60 months.
How Does a CD Work?
When you open a CD at Peoples Bank, you deposit a lump sum and agree to leave it in the account until the term ends— called the maturity date. In return, you earn a higher, fixed interest rate for the full term. Withdrawing funds before maturity results in an early withdrawal penalty.
Rate Riser CD: Peoples Bank's Flexible CD Option
Peoples Bank offers a Rate Riser CD— a unique certificate product that allows you to raise your interest rate one time during each term. This is valuable in a rising rate environment: if rates increase after you open your CD, you can lock in the higher rate without waiting for maturity.
What is a CD Ladder Strategy?
A CD ladder divides your savings across multiple CDs with staggered maturity dates (e.g., 6-month, 12-month, 24-month). As each CD matures you renew it at the longest term. This balances higher rates with regular access to funds. Ask a Peoples Bank banker to help structure a CD ladder for your savings goals.
Frequently Asked Questions About CDs at Peoples Bank
CD vs. Savings Account?
A CD pays a higher fixed rate but locks your funds for the full term. A savings account pays lower interest but allows access anytime without penalty.
CD vs. Money Market?
Money market accounts pay variable rates and keep funds liquid. CDs pay fixed, typically higher rates — but funds must stay in place until maturity.
CD vs IRA?
An IRA is a tax-advantaged retirement account. A CD is a savings product, but you can hold a CD inside an IRA.
What terms does Peoples Bank offer?
CDs ranging from 3 to 60 months. Longer terms typically earn higher rates. Contact any Peoples Bank location for current rates.
Personal Checking
Enjoy the flexibility of our Checking Account options! We will help match you with an account that best fits your financial needs!