Bragg Mutual FCU
Bragg Mutual FCU

What Exactly is a CD, and How Can it Grow My Savings?

Basics of CD’s

A Certificate of Deposit or CD is a federally assured savings account.  It has a fixed interest rate with a maturity date or date of withdrawal.  Withdrawing before then will accrue a withdrawal penalty that depends on the account agreement, normally a portion of the earnings.  Typically, the specified amount of time the CD is open before a withdrawal is anywhere from three months to five years.  Earnings, or dividends, are estimated in terms of the annual percentage yield.  Dividends take into consideration the frequency that returns are added to the CD.

Benefits of CD’s

CDs are low risk because your money is safe until the maturity date.  The National Credit Union Administration insures CDs up to $250,000.  However, the main benefit of CDs is they offer higher yields than traditional savings accounts. The longer you leave the money in the CD, the better the earnings from the interest rate.  Putting money into a CD instead of a traditional savings account grows your savings long-term.

Turn saving money into earning money with a CD at Bragg Mutual Federal Credit Union.  Bragg Mutual Federal Credit Union offers CDs ranging from 6-60 months and requiring as little as $1,000 to open.  A daily balance method is used to calculate dividends and credited monthly.  If at the maturity date, you choose not to close your CD, they are renewed at the current market rate after a grace period. 

Wondering if a CD is a right choice for you? Stop in at one of our branches and our knowledgeable, friendly Bragg Mutual Team will guide you in the products that will help you meet your financial goals.

We help you save money and make money. To learn more about our services and find which branch is closest, please visit or call 910-222-1500.

*Subject to credit approval. Rates disclosed reflect our best rates and may be different based on credit underwriting or services used. All loan rates are subject to change without prior notice. The information posted here is a service to our members. Although BMFCU strives for information accuracy, we do not guarantee or warrant information posted here.


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