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Certificates of Deposit

Joanne Loeslie

CDs are a safe and affordable component of an investment strategy with a low minimum investment requirement, no monthly fees and interest earnings that are compounded and automatically credited monthly or at maturity to your account.

These FDIC-insured deposits are guaranteed safe to maturity by the full faith and credit of the United States government to $250,000 per depositor for each account ownership category.

CDs with longer maturities are rewarded with higher interest rates. American Federal offers the convenience and choice of automatically reinvesting the earned interest or depositing it into a checking or savings account. American Federal CDs are automatically renewable so there is no worry about funds sitting idle.

Add liquidity by laddering your CDs to stagger the maturity dates and always have access to some of your money. CD laddering spreads your money across a range of CDs with different terms and fixed interest rates.

Invest in a secure CD. Longer terms and greater balances earn higher interest rates.

The American Federal Step Up CD offers an opportunity to request a better rate one time during the initial term of the CD, removing any worry you will miss out on interest earnings, if rates go up during the term of the CD.

  • Fixed interest rate guaranteed to maturity
  • Longer terms and greater balances earn higher interest rates
  • Deposits FDIC insured up to the maximum established by the FDIC per depositor and ownership category
  • Maturities ranging from 91 days to 60 months
  • No monthly or annual service fees
  • $1,000 minimum deposit to open CD
  • Daily minimum balance of $1,000 required to earn interest
  • Interest compounded and credited either monthly or at maturity5
  • Choose to have interest credited back to your CD or into a savings or checking account
  • Automatically renewable
  • Penalty may apply for withdrawals before maturity

5 Interest at maturity is available for CDs with terms less than one year. Interest monthly is available for CDs with terms greater than 91 days.