Turn Economic Uncertainty Into Opportunity 

The market may be volatile, but the news isn’t all grim. In fact, smart investors can use this time as an opportunity to take advantage of higher interest rates on bank products like personal certificates of deposit (CDs).

CDs can be a great place for funds you don’t need immediate access to, since term lengths can vary. Further, when you use a money-saving financial product like a CD, you’re more likely to earn a higher interest than you would through a traditional savings or money market account.

CDs aren’t just for soon-to-be retirees anymore. As their interest rates have risen, so has interest in them. Case in point: The search volume for “CD rates” has quadrupled over the past year.1

That said, CDs are not for everyone. 

They're for people who want to make the absolute most of a good rate environment that is being driven by Federal rate increases (which may not last). These people tend to believe the APY on savings accounts may go down, so they want to lock in a good rate while they can.

CDs are for people with decently sized investable assets who value consistency and safety. They are not for people who want an investment that is high risk/high reward, or for people who are okay with losing money at all for that matter.

Oh, and did we mention the benefits of opening a CD account with a bank that has your best interests at heart? Here are six of the most compelling ones:

1. You’ll achieve savings goals faster. Depositing a lump sum of money into a CD, like those offered by Texas Capital Bank, ensures you’ll get the principal investment plus compounded interest back when the CD matures.2
2. You’ll get a fixed rate. Interest rates on savings and checking accounts can change over a few months or years. However, the interest rate on a certificate of deposit is fixed, so you can be confident you’ll get a specific percentage of interest on your money for the entire term of your CD. Your bank or credit union will always send a notice alerting you to your CD’s upcoming maturity. This notice will explain when your CD’s term ends, as well as whether the CD will renew. (Note: The interest rate may change at the start of a new term, so always check with your bank before renewing.)
3. You won’t be tempted to spend that money. If seeing a large number in your savings, checking or money market accounts tempts you to spend money, a CD is a good way to place funds “out of reach.” CDs are particularly great for savers who want a dependable means of earning compounding interest over a set period.
4. You can access the money if necessary. Should you need that money before a CD’s maturity date, you can remove the funds. You may incur an early withdrawal penalty. Ask a banker at your local Texas Capital Bank about any fees and penalties before opening a CD.
5. Lock in 4.00%+ Annual Percentage Yield (APY) for your savings—in just 90 days. Different banks require varying “minimum deposits,” as well as versatile CD products for every customer’s future. Open a Texas Capital Bank CD with a minimum $1,000 deposit that could earn 4.35% APY for a 90-day time frame. Want to earn a fixed rate on your money for a longer term? CD options at Texas Capital Bank also include 180-day, one-year and two-year terms, and all require just $1,000 to open. Rates are subject to change at any time.
6. CD balances are secured by the FDIC. Always make sure your bank’s funds are insured by the Federal Deposit Insurance Corporation.3 If the total amount of your funds at one bank, across one or several accounts, is over $250,000, then confirm with the bank that all your funds are insured and secured by the FDIC.4 Bask Bank is a division of Texas Capital Bank, Member FDIC. The sum of your total deposits with (i) Bask Bank (ii) Texas Capital Bank, are insured up to $250,000 per depositor, for each account ownership category.