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 (FAQs) 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 CD terms does Peoples Bank offer?
Peoples Bank offers Certificates of Deposit (CDs) with terms ranging from 3 months to 60 months (5 years). CDs provide a fixed interest rate for the duration of the term, typically offering higher yields than standard savings or money market accounts. They are an ideal option for funds you do not need immediate access to. Early withdrawal before the maturity date will result in a penalty. Contact a Peoples Bank banker at any of the ten locations across Iowa, Minnesota, and South Dakota for current CD rates.
What is the Peoples Bank Rate Riser CD?
The Peoples Bank Rate Riser CD is a special Certificate of Deposit product that allows you to increase your interest rate once during the CD's term. This is a significant advantage over a standard CD; if interest rates rise after you open your CD, you can exercise your one-time rate adjustment to capture a higher yield for the remainder of the term rather than being locked into the original rate. The Rate Riser CD combines the security of a fixed-rate instrument with a built-in hedge against rising interest rate environments, making it a smart option for savers who want both stability and flexibility.
What is CD laddering, and can I do it with Peoples Bank CDs?
CD laddering is a savings strategy where you spread your savings across multiple CDs with staggered maturity dates — for example, one 6-month CD, one 12-month CD, one 24-month CD, and so on. As each CD matures, you reinvest it at the current rate, keeping a portion of your savings liquid at regular intervals while still capturing higher long-term yields. Because Peoples Bank offers CD terms from 3 to 60 months, you can absolutely build a CD ladder across their full range of terms. This strategy pairs especially well with the Rate Riser CD for added flexibility.
Personal Checking
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