Certificates of Deposit (CDs)

A Safe, Secure Way to Grow Your Savings

At Central State Bank, we offer Certificates of Deposit (CDs), an excellent low-risk investment option that helps you build your savings with a guaranteed fixed interest rate. With a variety of flexible terms, you can choose the CD that works best for your financial goals. Whether saving for a short-term goal or planning for the future, a CD is a safe and reliable way to earn more on your deposits.

Open a CD   

What is a Certificate of Deposit?

A Certificate of Deposit (CD) is a high-interest savings account that locks in your money for a specified period in exchange for a fixed interest rate. The key benefits of a CD are predictable returns and FDIC insurance. The interest rate is guaranteed for the entire term, so you don’t have to worry about market fluctuations affecting your earnings. While your money is locked in until the end of the term, a CD can be a great choice for those looking to grow their savings with minimal risk.

Why Choose to Invest in a CD?

  • Guaranteed Fixed Interest Rate: Your interest rate is locked in for the entire term, so you can plan your savings with certainty.
  • FDIC Insured: Rest assured knowing your investment is protected up to $250,000 by the Federal Deposit Insurance Corporation (FDIC).
  • Flexible Terms: Choose a term length that fits your savings goals, from 6 months to 5 years.
  • Higher Interest Rates: CDs typically offer higher interest rates than regular savings accounts, making them a better way to grow your money over time.
  • No Maintenance Fees: Unlike other savings accounts, there are no fees to maintain your CD.
  • Easy Online Banking: Manage your CD online or through our mobile app for convenient access to your account information.

How Do CDs Work?

When you open a CD, you deposit a certain amount of money into the account for a fixed term, which can range from 6 months to 5 years. In exchange, you receive a guaranteed interest rate for the term.

  • Fixed Interest Rate: The rate remains the same throughout the entire term, ensuring you know exactly how much you’ll earn by the end.
  • CD Early Withdrawal Penalty: If you withdraw your funds before the maturity date, you may incur a penalty. It’s important to choose a term that aligns with your savings goals and timeline.
  • Automatic Renewal: When your CD term ends, your funds typically renew automatically at the current CD rate unless you withdraw them or select a different term.

CD Term Lengths & Rates

We offer a range of CD terms to meet your unique needs:

  • Short-Term CD: Terms as short as 6 months for quick savings goals.
  • Medium-Term CD: 6-month, 12-month, and 24-month options for those who want to earn interest over a bit more time.
  • Long-Term CD: 3-year or 5-year terms for longer-term savings with the potential for higher interest rates.

View Central State Bank’s new CD rates for specific information about available term lengths, minimum deposit requirements, and annual percentage yield (APY).

A Local Bank With a Difference

We’re a hometown bank that’s proud to serve our community and provide personalized banking solutions that meet your needs. Our team is dedicated to offering you the best rates and the highest level of customer service. When you open a CD with us, you’re choosing a secure, high-interest way to invest with the confidence that your money is in good hands.

Find Out How You Can Get Started

Ready to take the next step in growing your savings? Contact us or visit your local Central State Bank branch to learn more about our Certificates of Deposit, money market accounts, and savings accounts and find the right option for you.

Let’s work together to secure your financial future!

 

Frequently Asked Questions

Yes. CDs are considered one of the safest savings options available.

With Central State Bank CDs, your deposits are FDIC insured up to applicable limits under federal coverage guidelines.

Because CD rates are fixed for the term, your earnings are predictable and not affected by stock market fluctuations.

Certificates of Deposit (CDs) typically offer higher interest rates than standard savings accounts because you agree to keep your money in the CD for a fixed period of time. Since the bank can count on those funds remaining in place during the CD term, it can often pay a higher rate in return.

Savings accounts provide more flexibility and easier access to funds, while CDs reward customers who are comfortable setting aside money for a specific savings goal or period of time.

At Central State Bank, CDs can be a smart option for customers looking for:

  • Guaranteed returns
  • Stable growth
  • FDIC-insured savings
  • A predictable savings strategy

Under normal circumstances, your principal is protected when held to maturity. However, there are a few things to consider:

  • If you withdraw funds before maturity, an early withdrawal penalty may reduce some of your earned interest.
  • During certain economic periods, inflation may rise faster than your CD earnings, which can reduce your money’s purchasing power over time.
  • CDs are designed for funds you do not expect to need during the term.

For many savers, CDs provide peace of mind because they offer stable returns and low risk compared to market-based investments.

Yes. Early withdrawals from a CD generally incur a penalty that may reduce earnings.

Because CDs are designed for fixed-term savings, early withdrawal penalties help offset the impact of withdrawing funds before maturity.

Customers should review the account disclosures and terms before opening a CD to understand:

  • Applicable penalties
  • Grace periods
  • Renewal policies
  • Withdrawal limitations

A Central State Bank banker can help explain available options and answer questions before opening an account.

The best CD term depends on your savings goals, timeline, and comfort with locking in a rate.

A shorter-term CD may work well if:

  • You want quicker access to funds
  • You believe rates may rise soon
  • You are building flexibility into your savings strategy

A 12-month CD may be a better fit if:

  • You want to lock in a guaranteed rate for longer
  • You do not need immediate access to the funds
  • You prefer a balance between flexibility and earnings potential

Longer-term CDs often offer higher rates because you commit funds for a longer period.

A one-year CD may be ideal for:

  • Shorter savings goals
  • Uncertain rate environments
  • Customers who want more regular access to maturity options

A five-year CD may appeal to customers who:

  • Want long-term guaranteed growth
  • Prefer predictable returns
  • Do not anticipate needing the funds soon

A CD ladder is a savings strategy that spreads money across multiple CDs with different maturity dates.

For example, instead of putting $10,000 into one 5-year CD, you might divide it into:

  • One 1-year CD
  • One 2-year CD
  • One 3-year CD
  • One 4-year CD
  • One 5-year CD

As each CD matures, you can:

  • Access the funds if needed
  • Reinvest into a new long-term CD
  • Take advantage of changing interest rates

Many customers use CD ladders to balance:

  • Competitive rates
  • Ongoing liquidity
  • Long-term savings growth

Yes. Interest earned on CDs is generally considered taxable income, even if you leave the money in the account until maturity.

Even if I don’t withdraw the money?

Yes. Interest earned during the year is typically taxable in the year it is credited, whether or not you withdraw it.

Will I get a 1099-INT?

Yes. If your earned interest meets IRS reporting thresholds, Central State Bank will provide a Form 1099-INT for tax reporting purposes.

Because tax situations vary, customers should consult a tax advisor for guidance specific to their situation.

APY stands for Annual Percentage Yield.

APY reflects the total amount you can earn in a year, including the effect of compounding interest. It gives customers a more accurate picture of potential earnings than the interest rate alone.

The higher the APY, the greater your potential earnings over time.

When your CD reaches maturity, you generally have several options.

You can:

  • Withdraw your principal and earned interest
  • Reinvest into another CD term
  • Allow your CD to renew automatically at the rate in effect at that time

Central State Bank provides maturity notices and renewal information before your CD matures so you can review your options.

CDs are typically single-deposit accounts. With Central State Bank CDs, you can make one additional deposit during the term, giving you added flexibility as your savings grow.

Many savers also choose to open additional CDs over time as part of a CD ladder strategy.