A great way to grow interest money on some extra cash you have is to place this money into a high yield CD account. CNB Bank Direct is currently offering 1.00% APY on a 12 month CD. This is an enticing offer to many investors that are looking for ways to grow some money in their rainy-day accounts. The high yield CD account from CNB Bank Direct is one of many different accounts that are currently on promotional offers.
Chapter 1. Risks To High Yield CD Accounts
When it comes to investing your money you have to consider whether your investment is at risk. Although CD accounts are low risk because most of them are insured by the FIDC, long term CD accounts keep your money tied up. You will be charged a fee for taking your money out before the CD is mature. So be sure you’re ready to commit to a CD account before you open one up. CNB Bank has been a member of the FDIC since 1934.
Chapter 2. Account Features
In order to get the high interest rate on your CD account you will need to come up with a $25,000 minimum deposit amount. Here are some of the other features you are eligible for with your account:
- 12 month CD 1.00% APY
- 18 month CD 1.05% APY
- 24 month CD 1.20% APY
Chapter 3. Details To Be Aware Of
It is important to maintain the higher balance in the account to earn the APY. There will be a penalty on the account for early withdrawal. If you do not have at least $25,000 in the account you will be penalized and you will not be able to earn the high APY. In order to open a high yield CD account from CNB Bank Direct you must already have a high yield savings account as this is how you will fund the CD account. You can choose if you would like the interest money to go to your high yield savings account or if you would like it to go to the CD account. Once your account reaches maturity all of the money will be transferred to your high yield savings account and you will need to fill out a closure form to specify your directions on the closure of your account.
Chapter 4. Online Access
CNB Bank Direct does provide you with online access to the account. This makes it easy for you to transfer the interest money to the account and the ACH transfers occur quickly, allowing you to maintain a high balance. Using the online banking system tends to be a little confusing, especially when dealing with ACH transfers. You can call customer service if you have any questions.
Chapter 5. Should I Invest?
When considering the high yield CD account from CNB Bank Direct you also need to compare it to current CD rates offered by other companies. CNB Bank Direct used to have a very high interest rate back in 2008 but it has since dropped, as have many others. They are in the middle of the pack with competitive interest rates, which is why you have to consider the fees and account limitations when making your investment decision.