Why an Add-On CD Might Be Right for You

http://www.ehow.com/facts_7368805_can-account-after-it_s-open_.html

Do any of these sound like you?

• I want to start saving
• I want a higher interest rate than what a typical savings account offers
• I don’t want the interest rate to go down 
• I don’t want any kind of risk to my principal amount
• I might need my money in a year 
• I don’t have a big principal amount to start with
• I’m not sure how much I can contribute each month

Well, if any of those did sound like you, you might want to consider opening an Add-On CD at here at HCCU. Basically, a normal CD is a time deposit that allows you to receive higher interest on an initial deposit. What’s unique about an Add-On CD is that the minimum deposit is a lot lower, and you can add onto your deposit (hence the name) each month. The minimum deposit here is only $100 as opposed to the $500-$1,000 minimum deposits usually required. The reason the minimum deposit is so low is because an additional deposit each month is required. Now this deposit can be of any amount though. You could even set up a reoccurring transfer from another account to make sure you keep adding to your principal and don’t miss a month. Another great thing about adding a deposit each month is that the interest you earn will go up each month. The interest rate stays the same, but the more you put in, the more you get back. The current term for an Add-On CD is twelve months, so there’s not a really long commitment either. At the end of the twelve months, you can take out your total earned or start a new CD with it right away. Overall, an Add-On CD is a great savings alternative!

If you’d like any more information, visit our website, horizonccu.com, go to Savings Products, and click on Share Certificates.

Post by: Noelle C.