Business Certificates of Deposit

Certificates of Deposit

First Federal Bank offers a variety of certificates of deposit (CD) to fit your needs and can help you choose a CD that makes sense for your business. We encourage you to chat with a business banking professional about current CD rates for different terms and amounts. Let us help you save for the future and earn money at the same time.

• CDs range from 6 months to 60 months
• Transfer interest to your checking or savings account or add it to the CD balance
• $500 minimum required to open account
• CDs are insured for up to $250,000 (FDIC)
• Substantial penalties apply to early withdrawals

What is a Certificate of Deposit?

A CD is a type of risk-free fixed investment product. Businesses choose to invest money for a predetermined period of time at a fixed interest rate, with the principal and interest paid back at the end of the term. CDs tend to have higher interest rates than business checking or savings accounts, making them a safe way to earn money over different terms. The longer the length of the CD, the higher the interest rate.

Why Should Businesses Invest in CDs?

Many businesses invest in CDs as a way to save money and earn interest at the same time. Because CDs pay higher interest rates than checking or savings accounts, businesses can delegate savings over specified periods of time with a known return on investment. It’s a low-risk way to put your money to work while you save for something greater. And, if you ever need to withdraw it for an emergency, you can (early withdrawal penalties apply).