A Certificate of Deposit (CD) is a guaranteed investment product commonly sold by credit unions and banks. The financial institution expects that CD to be held until a maturity date, at which time the funds can be withdrawn and interest is paid to the depositor.

CDs are similar to but differ from savings accounts in that they usually feature:

• Fixed term (typically three months to five years)
• Fixed rate (typically guaranteed for the full term)
• Fixed maturity date (Can’t withdraw funds without penalty prior to maturity)

In most cases, you make one initial deposit to fund your CD and cannot add more later. Early withdrawals before the term ends may also result in a penalty.

Why choose a CD?

Investing in Certificates of Deposit can be a safe and reliable alternative to investing in the stock market to help you achieve longer-term savings goals. CDs also provide a guaranteed rate of return, so you will know how much your investment will grow over time. This appeals to the risk-averse as well as young adults and those inexperienced with the stock market. Plus, Ardent CDs are federally insured by the NCUA.