Getting Started with CDs
A Certificate of Deposit (CD) is a timed savings product that allows you to securely grow your investment over a set period of time, offering a high-yield alternative to traditional savings accounts without the risk of many market-based investments. With a CD from Vision Bank, you can meet your saving goals with the peace of mind of knowing exactly what you will earn and when you will have access to your funds. Try our CD Calculator to help you understand how Certificates of Deposit work.
Features and Benefits of CDs
- No opening fee
- Term lengths ranging from 90 days to 5 years
- FDIC insured up to $250,000
- Fixed interest rates with guaranteed returns
- Better yields than traditional savings accounts
Types of CDs Available
Traditional Term CDs
When most people think of a CD, they think of a traditional term certificate of deposit. This savings product has both a set term length and interest rate. Like a bond, during the duration of the term you won’t have access to the funds, though your returns are guaranteed upon maturation. When the length of your term is over, you can withdraw your principal and interest, or roll it over into a new CD.
An IRA CD is an individual retirement account where your funds are specifically invested in certificates of deposit. IRA CDs combine the tax benefits of an IRA with the stability of a CD, making them popular choices for those nearing retirement, as well as for individuals taking advantage of high CD rates. Like other IRAs, you will not gain access to your investment until you reach retirement age, and IRA CDs can be funded both by rolling funds from an existing retirement account or with new contributions. Note: transfers from an IRA account into an IRA CD do not count toward minimum distribution requirements.
Consider CDARS for Increased FDIC Coverage
While the FDIC traditionally covers accounts of up to $250,000, you can ensure that your larger investments are adequately protected with the Certificate of Deposit Account Registry Service (CDARS). When you open a CD with CDARS, your bank works with the IntraFi Network of financial institutions to divide your CD’s value into smaller amounts of less than $250,000, so your entire investment qualifies for full FDIC insurance. At Vision Bank, we can help you decide if CDARS is right for you.
Features of CDs through CDARS
- FDIC insurance for deposits over $250,000
- Receive up to $50 million in FDIC protection
- No account fees
- No setup charges
- Same guaranteed interest rates and returns
How to Open A CD Account
Stop by and open your account today at one of our convenient locations or give us a call at 888-332-5132 to learn more. When you’re ready to open your account, be sure to bring one (1) form of valid government-issued identification (new customers need a photo ID) and a $1,000 opening deposit.
Getting Started with Individual Retirement Accounts (IRAs)
Invest in your future by opening an Individual Retirement Account (IRA) account with Vision Bank. We have a variety of options to best suit your needs!
- Traditional IRA: Save for retirement while reducing your current taxable income. With a Traditional IRA, you pay no taxes on your earnings or contributions until you receive distributions in retirement.
- Roth IRA: While your contributions to a Roth IRA are taxable, you’ll experience tax savings in retirement. Pay no income tax on distributions from your Roth IRA once you reach retirement age.
- SEP IRA: Ideal for self-employed individuals and small business owners, Simplified Employee Pension accounts allow both individuals and employers to make tax-deductible contributions. When your company contributes to your employees’ accounts, you may also qualify for additional tax deductions.
How To Open AN IRA Account
Stop by and open your account today at one of our convenient locations or give us a call at 888-332-5132 to learn more. When you’re ready to open your account, be sure to bring one (1) form of valid government-issued identification (new customers need a photo ID) and a $200 opening deposit.