CDs are simple, safe vehicles of investment for people that want to earn greater interest than a savings account offers. New Era Bank issues CDs with maturities ranging from as little as 91 days, to as long as 5 years, with interest increasing in proportion to the time the money is tied up in the CD. CDs are great products for those averse to risk because they are FDIC insured up to $250,000. Additionally, your rate is locked in, so you can calculate the income you will earn from the CD at the outset.

Tip: Have the interest earned on your CD directly deposited into your New Era Bank checking account or savings account.

Jumbo CDs

Jumbo CDs are certificates of deposit with a large deposit required- usually over $100,000. A jumbo CD has a higher payback than smaller deposit accounts. Often the biggest concern of a jumbo CD is that the FDIC limits per depositor coverage to $250,000.

Tips for buying a CD

1. Know when the CD matures:
Make sure to confirm the maturity of your CD. Early withdrawal penalties apply and you don't want to be surprised to find out that you tied your money up in a CD for longer than you thought.

2. Confirm the annual percentage yield and rate you’ll receive. At New Era Bank you will receive a disclosure document telling you the APY and the interest rate that your CD will earn. Make sure to ask how often the bank pays interest (monthly, quarterly, etc.). Also, make sure to confirm how you'll be paid. Two convenient options are to let the interest earned compound, raising the amount of your CD, or to automatically deposit the interest to your New Era Bank checking or savings account.

3. Ask if there is an early-withdrawal penalty:
It's a good idea to know how much you'll pay if you cash out your CD before maturity.