Certificate of Deposit (CD)

Table of Contents:

• Guaranteed Best CD & IRA Rates
• Why Choose a Certificate of Deposit?
• Build-it CDs
• How a CD Can Benefit You
• Choose the Right Term
• Who Should Use CDs?
• Frequently Asked Questions About CDs

CDs with First South grow your savings with predictable returns that protect your investment. Our low-minimum CD account options offer competitive interest rates and strong annual percentage yields (APYs) on a variety of deposit accounts, all with a low minimum opening deposit.

Guaranteed Best CD & IRA Rates

We believe you shouldn’t have to shop endlessly for the best return on your money or settle for less. If you find a rate better than our industry-leading returns, we’ll beat any advertised CD rate from other credit unions or banks, guaranteed.* Learn more.

Why Choose a Certificate of Deposit?

When you open a Certificate of Deposit, you agree to keep your funds on deposit for a set term. In exchange, you typically receive a higher interest rate than you would with a traditional savings account.

Benefits of a CD include:

• Fixed interest rates that won't change during the term of the account.
• Guaranteed growth based on your rate and term.
• Protection of your principal deposit.
• Prepare for long-term financial security
• Multiple term options to fit your savings goals.
• At First South, funds are federally insured up to $250,000 by the NCUA.

Whether you're saving for a future purchase, building an emergency fund, or looking for a stable place to keep your money, a CD can offer confidence and predictability.

Build-it CD

Simplify saving for a multitude of life events with First South Financial's Build-it CD. This 3- or 6-month CD allows you to make deposits into the CD at any time, not just at maturity. It only requires $100 to open and earns the same rates as our regular CDs for the same term.

How a CD Can Benefit You

A Certificate of Deposit can help you reach your financial goals by providing a secure and disciplined way to save.

Earn Competitive Returns

CDs often offer higher yields than standard savings accounts. By locking in a fixed rate, you know exactly how much your money can earn over the term of the account.

Protect Your Savings

Unlike investments that may fluctuate in value, CDs provide a guaranteed return if funds remain on deposit until maturity.

Open an Account

Choose the Right Term

One of the most important decisions when opening a Certificate of Deposit is selecting the right term length. While longer terms may sometimes offer higher rates, the best choice isn't always the longest one. The ideal CD term depends on when you'll need your money, your savings goals, and your comfort level with depositing funds. CDs are available in a variety of term lengths, including:

• Short-term CDs (3 to 12 months)
• Mid-term CDs (1 to 3 years)
• Long-term CDs (3 to 5 years or longer)

This flexibility allows you to match your savings strategy to your timeline. First South’s Build-it CD even lets you deposit more over time.

Start With One Simple Question

When do you expect to need this money? Your answer will usually point you toward the most appropriate CD term.

Short-Term CDs: For Near-Term Goals and Flexibility

A short-term CD may be a good fit if you'll need access to your funds within the next year or if you're uncertain about future interest rate changes. Typical short-term CDs are mature in 3 to 12 months.

Consider a short-term CD when:

• You're saving for a vacation, home project, or other expense within the next year.
• You want to earn more than a traditional savings account without committing your money for several years.
• You expect interest rates may rise and want the flexibility to reinvest sooner.
• You're new to CDs and want to start with a smaller commitment.

Medium-Term CDs: For Balanced Growth and Accessibility

Medium-term CDs often provide a balance between earning potential and flexibility. They can be a practical choice for savers with goals that are still a few years away. Typical medium-term CDs are mature in 1 to 3 years.

Consider a medium-term CD when:

• You're saving for a major purchase 1 to 3 years from now.
• You want a predictable return without tying up money for an extended period.
• You're comfortable leaving the funds untouched for a few years.
• You want a middle ground between short-term and long-term options.

Long-Term CDs: For Future Goals and Rate Stability

Long-term CDs are best suited for money you won't need in the foreseeable future. They can provide peace of mind by locking in a fixed return over several years. Typical long-term CDs are mature in 3 to 5 years or longer.

Consider a long-term CD when:

• You're saving for a goal that's several years away.
• You want guaranteed growth without monitoring the market.
• You value stability and predictability.
• You're comfortable setting aside funds for an extended period.

Because the interest rate is fixed, CDs make it easier to forecast future savings growth and plan for upcoming expenses.

Who Should Use CDs?

Certificates of Deposit are a good fit for anyone seeking stability, saving for a specific goal and looking to maximize returns, and savers looking for additional ways to dial in their financial plan.

Savers Seeking Stability

If preserving your money is more important than pursuing higher-risk investments, a CD may provide the security you're looking for.

Individuals Saving for a Specific Goal

CDs can help you save for:

• A home purchase
• College expenses
• A future vacation
• Major home improvements
• Planned retirement expenses

Those Looking to Diversify Savings

CDs can complement checking accounts, savings accounts, money market accounts, and investment portfolios by adding a stable component to your overall financial plan.

Open an Account

Frequently Asked Questions About CDs

What is a Certificate of Deposit (CD)?

A Certificate of Deposit is a deposit account that pays a fixed interest rate for a specified period of time, known as the term.

How does a CD work?

You deposit funds into a CD and agree to leave them on deposit until the maturity date. In return, the financial institution pays interest at the agreed-upon rate.

Are CDs safe?

CDs are generally considered a low-risk savings option. Deposits held at First South are federally insured up to $250,000 by the NCUA.

Can I withdraw money before my CD matures?

Most CDs allow early withdrawals, but doing so may result in an early withdrawal penalty. Review the account's terms and disclosures for details.

What happens when a CD reaches maturity?

When a CD matures, you may have the option to withdraw your funds, transfer them to another account, or renew into a new CD term.

Do I make ongoing deposits to a CD?

Most Certificates of Deposit are funded with a one-time opening deposit. Unlike many savings accounts, traditional CDs generally do not allow regular contributions after the account is opened. Still building your savings but want to try a CD? First South’s Build-it CD is the perfect fit!

Are CD interest rates fixed?

Most traditional CDs offer fixed rates for the duration of the term, although rate structures can vary by product.

Is a CD better than a savings account?

That depends on your goals. CDs typically offer higher rates in exchange for keeping your funds on deposit for a set period, while savings accounts generally provide greater access to your money.

*Promotional rates are subject to change or withdrawal without notice. Restrictions apply to the 5-month and 13-month CD and IRA specials as well as Guaranteed Best Rates. Please see us for complete details. Funds are federally insured up to $250,000 by the NCUA. Please see us for complete details.