24 Oct Savings Account Vs. Certificates of Deposit – Which is better?
Unison Bank offers a variety of personal and business products and services. Two of which are our Unison Savings Accounts and Certificates of Deposit. But, what’s the difference? Which is better? What one should you choose?
Unison Bank’s personal savings account features a tiered rate structure – meaning your interest rate is calculated based on the amount of money you have in your account. Features of this account include:
- Checks that can be used to access the funds in your account upon request
- Savings are FDIC insured
- Free Debit Card for ATM access
- Free Mobile Banking
- Free Online Banking
- Free E-Statement available upon request
- Free Automatic Transfer Service (ATS) can be added to your account to cover overdrafts on your checking account.
Certificates of Deposit (CD)
Unison Bank also offers a variety of Certificate of Deposit (CD) terms that provide competitive rates of return. The interest rates of a CD varies based on the term chosen. Features of this account include:
- Variety of Term Lengths Available – 6 Months to 60 Months
- Variety of Opening Balance Requirements
- May renew automatically
- FDIC insured
- Interest may compound onto the balance of your certificate of deposit, be deposited into your checking or savings account or a check can be issued to you.
So, what option do I pick?
The answer to that depends on your goals. With a traditional savings account, you can access your funds at any time; however, the interest rate is generally lower. With a CD, the interest rates are generally higher, but the funds are fixed for the term of the CD. “Either way,” said Nadine Easton, Unison Bank’s AZ Branch Manager and VP Operations Manager, “utilizing the right account can make your investments worth the wait.”