Certificates of Deposit (CDs) are attractive investment vehicles for many individuals. Depositors agree to leave a specific amount on deposit for a specific period of time in exchange for a higher rate of interest.
Terms of varying lengths are available so depositors can select the term or terms best suited to their needs.
FDIC insurance coverage applies to amounts held in CDs just as in any other deposit accounts.
Interest on your account is paid monthly and may be left to accumulate in the CD or may be withdrawn at any time. Depositors can come into the bank to withdraw interest as needed. Competitive rates are offered on certificates with terms between of three months up to 48 months.
Automatic payment or transfer of interest can be readily arranged so that those depositors who want to use their interest can have the interest automatically transferred to another account. For example, a depositor can instruct us to automatically credit monthly interest to a checking account so that the interest can be used regularly to supplement income. The depositor can then write checks on the checking account to pay expenses. This way, depositors can travel or vacation without being concerned about having to come into the bank or having a check delayed or lost in the mail.
Free Telephone Banking is available to you to access current information on your account. Dial 1-888-BANK-ARM / 1-888-226-5276.
Usually, the longer the term (length of time to maturity), the higher the Annual Percentage Yield or rate of return. Compare the rates offered on our various terms and select the one with the highest return and the maturity date that you are most comfortable with. Always check for specials – CDs with special or promotional rates.
Laddering of Maturities: Many investment advisors suggest opening several term certificates with varying maturity dates so that depositors can earn the highest returns but still have a portion of their funds available (maturing) within a short period of time. For example, a depositor might have $25,000 available to invest. The depositor may not want to tie up funds for a long period and may have determined that they need to have at least half of their funds relatively accessible. The depositor might open one CD for $12,500 for a term of six months and another for $12,500 for a year. When the six-month certificate matures it can be renewed for a year. This strategy gives the depositor the generally higher rate available on a one-year CD but assures them that they will have access to at least half of their funds within any six-month period. One of our representatives will be happy to discuss your needs and the various terms available to assist you in choosing the proper terms to meet your liquidity needs while earning the highest possible rate of return.
Availability of Funds: Depositors always have access to interest paid on their account. Withdrawal of principal before the maturity date, however, is subject to a penalty. Depositors may borrow funds by taking a collateral loan against a deposit account. Should an emergency arise, one of our representatives can assist you by calculating any penalty on a withdrawal and the amount of interest you would pay on a collateral loan so that you can choose the most economical option. Collateral loans can also be an excellent vehicle to meet a short term need for funds.
Additional Deposits to Certificates: With the exception of certain IRA certificates, are not allowed except when a certificate is being opened or renewed.
Withdrawal Without Penalty: Funds are always available without penalty to a deceased account holder’s joint account holder or, in the case of an account owned by an individual, the deceased account holder’s executor or administrator.
