Certificates of Deposit

What is a CD?

A CD, or a certificate of deposit, is a type of savings product that allows you to put a lump sum of money- also called the principal- into an account for a set amount of time, earning interest at a fixed rate. You can pick which term length would best suit your situation and then you agree not to touch your money until the end of the term- which is also called the maturity date. If you do need to pull your money out of the CD earlier than the maturity date, you may face early-withdrawal fees. At the end of your CD's term, you can choose to renew into another term at the latest rate, or you can choose to cash out.

All CDs at Port Richmond Savings can be opened with a minimum deposit of $500, and we offer term options ranging from 6 months through 5 years. You can see our current CD rates here.

What is the difference between a CD and a Savings Account?

A traditional savings account is an account where you can put money aside and earn interest on it, but you are able to access it when you need it. At Port Richmond Savings, you can easily move money from your savings account into your checking account within your Online Banking account or on the PRS Mobile App. A CD, on the other hand, ties your money up for the duration of the CD term. Because your money is untouchable however, CDs offer higher interest rates than traditional savings accounts.

When would a CD be helpful?

CDs are great for short term savings goals. Let's say you are trying to put money aside for a down payment on a house. You know you will start seriously house hunting in say, 3 years. You can choose to put your money into a 36 month CD and your money will grow at a higher interest rate than it would in a traditional savings account. You also won't be tempted to spend the money on other things because it is tied up for the duration of the term.

To read more about Savings Account options at Port Richmond Savings, visit our Savings page.