How to Save More Money with CDs

See how a Certificate of Deposit can benefit your financial goals faster than a standard savings account.

How to Save More Money with CDs


If you want to save money for the future and earn more interest than a typical checking or savings account, consider a certificate of deposit (CD) from Patriot Bank. This popular savings option helps you grow your hard-earned money faster than a standard savings account, easily and securely. Why choose a CD over other savings account options? Learn the basics of CDs and how they can benefit your savings goals. 

What is a CD?

A certificate of deposit, or CD for short, is a smart savings option that allows you to deposit a minimum amount of money for a specific period of time. In exchange, you’ll receive higher interest payments than typically found with money market accounts and traditional savings accounts. Additionally, a CD is backed by FDIC insurance, so you’re never at risk of losing money.

You can choose the length of the term, ranging from months to years, and earn interest when your CD matures, then take the payout or reinvest in another CD. If you withdraw money before the maturity date, most banks will issue an early withdrawal penalty. It’s wise to invest in a CD when you can keep your money on deposit to maximize your savings.

Laddering CDs

If you don’t want to tie up too much of your savings into a single CD, consider a CD laddering strategy. This approach offers a way to spread out your investment using multiple CDs with different maturity dates.

With a laddering CD approach, you can grow your money at a higher interest rate than a typical savings account, and you don’t need to tie up all your savings at once. For example, if you had $10,000 to invest, you could deposit that into four CDs of $2,500 with different terms. Once each CD matures, you could choose to move that money into a new CD or take the cash. At Patriot Bank, CDs range from 3 months to 5 years, and feature higher interest rates that can provide extra money for future expenses, major purchases or a comfortable retirement through both IRA and Roth CDs. Take a look at the various CD rates at Patriot Bank to see how much money can grow by taking this approach.

Longer-term savings

If you know you don’t need immediate access to your money and want to earn better rates than with a traditional savings account, a CD may be a smart savings tool for you. Patriot Bank offers a variety of options to grow your savings and help you reach your short-term and long-term savings goals.

The experts at Patriot Bank are here to guide you through all life’s stages and can help you decide which savings account or CD makes the most financial sense. If you have any questions about how Patriot Bank can help grow your savings, contact us or visit one of our Connecticut or New York branches.