A Safe, Reliable Way to Grow Your Savings
If you’re looking for a safe way to earn more than a traditional savings account, certificates of deposit (CDs) from Farmers Trust and Savings Bank may be the right choice. CDs are low-risk savings options that offer fixed interest rates and predictable growth. When you open a CD account, you lock in your rate for a set period of time, helping you plan your finances with confidence.
As a trusted Iowa community bank, we offer local bank CD accounts designed for customers who want security, simplicity, and competitive returns without market risk.
What Is a Certificate of Deposit?
A certificate of deposit (CD) is a type of fixed-interest savings account offered by banks. You deposit a lump sum of money and agree to leave it in the account for a specific term, such as six months, one year, or longer. In return, the bank pays you a fixed rate CD that typically earns more than a regular savings account.
Because CDs are FDIC insured (up to applicable limits), they are considered one of the safest ways to save. Your rate will not change, and your principal is protected.
How Do CDs Work?
Opening a CD is simple. You choose how much to deposit and select a term that fits your goal. Short-term CDs in Iowa offer flexibility, while long-term CD rates often provide higher returns.
Here’s how it works:
- Deposit your funds
- Earn interest at a fixed rate
- Reach maturity at the end of the term
- Withdraw your money or roll it into a new CD
Withdrawing funds early may result in a penalty, so CDs work best for money you won’t need right away.
Certificate of Deposit Benefits
CDs are popular because they grow your savings at a guaranteed rate, without the risk of market fluctuations. They’re a great option for conservative savers or anyone saving for a specific goal.
Key benefits include:
- Higher interest rates than most savings accounts
- Guaranteed earnings with fixed rates
- FDIC-insured CD accounts for peace of mind
- No market risk
- Encourages disciplined saving
For many customers, CDs are a smart way to balance financial security and financial growth.
CD vs. Savings Account: What’s the Difference?
Both CDs and savings accounts are safe, but they serve different needs. A savings account offers easy access to funds, while a CD rewards you for keeping your money saved longer.
- CDs: Higher, fixed rates; limited access; best for planned goals
- Savings accounts: Flexible access; variable rates; best for emergencies
If you’re deciding between a CD vs. a savings account, think about when you’ll need your money and how much growth you want.
Confidence Comes Standard with Our CD Accounts
As a family-owned, hometown bank, we offer community bank CD rates backed by local service you can trust. Our customers appreciate working with bankers who live and work in the same southwest Iowa communities they do.
With CDs at a local bank like Farmers Trust and Savings Bank, you get:
- Competitive Iowa bank CD rates
- Personal guidance from experienced bankers
- Multiple CD terms to match your goals
- Local decision-making and friendly service
We proudly serve Earling, Harlan, Woodbine, and surrounding areas with banking solutions built on trust.
Ready to Open a CD Account?
No matter if you’re saving for a future purchase, planning for retirement, or looking for safe savings options in Iowa, a certificate of deposit can help you stay on track.
Visit a Farmers Trust and Savings Bank location or call us today to open a CD account, lock in today’s rates, and start growing your savings with confidence.
