If you can stockpile some cash for six months, twelve months, or more, then you can store that money in a certificate of deposit (CD) for a set amount of time to earn extra cash, at a higher rate than most traditional savings accounts. Wondering why CDs have a higher rate of return? It’s our way of giving you kudos for not spending that cash and for trusting Canvas to help you afford life. Typically, the longer you stash it away, the higher the rate of return.
The perfect certificate of deposit example: saving up for a future home. Opening a CD allows your initial down payment to grow over time instead of sitting in a transaction account that may not earn interest and gives you more ready access to spend the funds that you want to save.
Certificates of deposit, or CDs, are the perfect option for making your savings grow. This special savings account pays
you a higher interest rate in return for securely locking your money away for a certain period of time. The longer you save,
the more you earn.* Keep in mind, once you open up your account, you will not be able to add additional funds to your CD for
the duration of the term, that means you can set it and forget it. Think of it as a temporary vacation for your savings where
your money gets to sit back, relax, and come back to you recharged and glowing.
*Throughout the life of your term, your certificate of deposit rate will remain the same no matter the market conditions.
If you’re a member of Canvas Credit Union or plan to be, you’re likely eligible. One thing to keep in mind is our certificates of deposit require a minimum deposit and balance of $1,000 (AKA, the minimum amount of money you’ll put into your CD). For our Classic Secured Mastercard CD, the minimum deposit and balance is $500. We have plenty of options based on your needs and will work with you to find your perfect savings plan.
Certificate of deposit benefits include predictability and safety. There’s no need to worry about an unstable market because CDs with Canvas are insured by the NCUA. When you open up a CD with us, we keep it easy so you can play it safe with low risk involved. Simply choose the amount you’d like to safely stash away, then choose your time period (term) and lock-in one of our certificate of deposit rates. All CD dividends (amount we pay you in interest) will be credited and compounded monthly throughout your term (IRA CDs are compounded quarterly).
Once your certificate of deposit term matures (AKA: ends), you will have three options:
1. Leave it as is. Let your CD automatically renew for an additional term with a new maturity end date. It is common for rates to change over time so the new rate is subject to change and we will let you know what the new rate will be but we also invite you to check back here regularly for the latest rates!
2. Open a new Canvas CD with a different term and rate. We offer a variety of CD options to best fit your needs.
3. Change it up and keep earning! Add or withdraw funds from your CD penalty-free during the 10-day grace period following the maturity date. As long as your CD is renewing, it will earn interest during the grace period too.
The option is yours, but if you’re unsure of which route to go, we’ll stand shoulder-to-shoulder with you to ensure you are making the best decision. We are here to help you afford life.
That is completely up to you, just make sure you know the minimum amount required to open the account and minimum balance you need to keep in your CD. For the most part, the more you invest, the higher amount you’ll earn.
We want to make sure you’re making the best decision for your financial future, so give us a call or visit us at your local branch and we can work together in guiding your finances.
You can do an online transfer, or set-up your CD over the phone or in person at your local branch. We want to make things as easy as we can for you!
Definitely! Depending on whether you’ve signed up for electronic statements or printed statements, your CD account will show up there.
The short answer is, unfortunately, no. We’re thrilled you want to keep boosting your savings, but the best part of investing in a CD is you can set it and forget it. You’ll want to think carefully about how much you want to deposit into the account because once the term you selected starts, you’ll have to wait till it ends to make any adjustments to your certificate of deposit. Any activity made to your account such as adding or removing money, could bring a penalty.
Once you open a certificate of deposit account, sit back and let your money do the work. All CD dividends (amount we pay you in interest) will be credited and compounded monthly throughout your term (IRA CDs are compounded quarterly). All you have to do is wait till your term ends and you will be able to take out your funds and newly accrued interest.
When your CD matures, we have your back. We will notify you of when it is expected to mature and we will provide you with options for next steps, whether that means reinvesting in a new CD offer or closing your account and transferring your money into a Canvas account or mailing you the funds. Keep in mind if you want to close your certificate of deposit account before your term ends, you’ll have to pay a fee.
Nope! Once your certificate of deposit account is done working its magic, we are delighted to get your funds back into your hands. Whether you want the money transferred to your Canvas Checking account or mailed in a check to your doorstep, we’ve got your back.
Yes, there is a penalty when you take your money out of your CD account before its finished working its magic. Keep in mind the penalty will differ based on which account you have. When you choose your account, we’ll review this with you loud and clear, so you know exactly what you are getting yourself into.