CD Special

A Certificate of Deposit (CD) is a financial tool that lets you deposit a specific amount of money with a bank for a fixed period at a predetermined interest rate. With terms ranging from months to years, CDs offer a stable, low-risk investment option. The fixed interest rate remains constant throughout the CD's duration, distinguishing it from other investments. Often backed by government insurance, like the FDIC, CDs provide security for your investment. Upon maturity, you receive both the initial principal and accumulated interest, allowing flexibility for further investment or withdrawal.

When you initiate a Certificate of Deposit (CD), you are entering into an agreement with the bank to maintain a specified sum of money in deposit for a predetermined period. This period, known as the term or maturity period, can vary, offering flexibility with terms typically ranging from a few months to several years.

In return for this commitment, the bank compensates you by paying interest on your deposit. The interest rate is determined at the outset of the CD agreement and remains fixed throughout the entire term. This fixed-rate structure provides you with a clear understanding of the earnings your investment will generate.

Certificates of Deposit (CDs) are widely regarded as a secure investment primarily due to the protection provided by the FDIC (Federal Deposit Insurance Corporation) for CDs issued by banks. The FDIC is a federal agency that insures deposits at banks and thrifts, offering a layer of security for depositors.

When you deposit funds into a CD issued by a bank, the FDIC typically ensures that your investment is protected up to certain limits. This means that even if the bank encounters financial difficulties, your deposited amount, along with the accrued interest, is safeguarded within the specified insurance coverage.

You may make a partial or closing withdrawal from a CD before the maturity date, however, doing so may impose an early withdrawal penalty as defined by the terms of the CD agreement. If you close your CD prior to the maturity date, accrued interest will be paid up until the day of closing.

You can open a CD by visiting a bank or financial institution in person, or in many cases, you can open one online. The process involves providing personal information and funding the CD with the desired deposit amount.

To open a CD with Chemung Canal Trust Company, Stop into one of our offices, or call us at 800-836-3711 and open your account today!

In the realm of Certificates of Deposit (CDs), the interest rate structure is predominantly characterized by stability. In the majority of cases, CDs feature a fixed interest rate, signifying that the rate remains constant over the entire duration of the CD's term. This fixed-rate mechanism offers a high level of predictability concerning your earnings, as it eliminates the impact of fluctuations in market interest rates during the specified period.

Typically, once a Certificate of Deposit (CD) is established, adding funds to the existing CD is not permitted. The terms of the CD, including the deposit amount, are fixed at the time of initiation. However, this limitation doesn't preclude you from exploring further investment options. You have the flexibility to open additional CDs with different terms and deposit amounts, tailoring your investment strategy to your financial goals.

This approach allows you to diversify your investments, considering various terms and interest rates that align with your overall financial strategy. While you cannot modify the terms of an existing CD, the ability to open multiple CDs provides a versatile approach to managing and growing your savings.

CD interest is typically calculated based on the agreed-upon interest rate and the length of the CD term. The interest may be compounded daily, monthly, or annually, depending on the terms of the CD.