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CD (Certificate of Deposit)

A certificate of deposit (CD) is issued by a bank to a person depositing money for a pre-specified length of time, generally used as a short-term to medium-term investment.

CDs earn a fixed interest rate and have a set maturity date on which the money can be withdrawn. To invest in a certificate of deposit, the customer must make a deposit meeting the minimum balance set by the financial institution, and maintain that balance for a set period of time.

The main difference between a regular savings account and a CD is the set maturity date. Penalty fees are charged if the certificate-holder makes an early withdrawal in advance of the pre-specified term of his or her CD.

Benefits of a Certificate of Deposit

  • Typically pay higher interest rates than standard savings accounts in return for meeting additional terms
  • FDIC-insured, like savings accounts, and are therefore low-risk compared to other investments (but are relatively low-return in comparison, as is the rule of thumb with most investment vehicles)
  • Peace of mind that comes with knowing the money you've deposited is safe and your interest rates won't fluctuate

Before making any sort of investment, it is most important to make sure you understand all the terms and benefits. If you have additional questions about what a certificate of deposit is, or whether it's right for you, please contact Columbia Bank.

We offer multiple CD opportunities to fit your needs, with competitive interest rates and tiered options for minimum balances and deposit terms. To get started with your application for a certificate of deposit, or to learn more about what we offer, view our CD rates.