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CDs and Money Market
Money Market
Our Glacier Peak Money Market is like a savings account, but you can earn a higher interest rate by limited access to your funds. With Glacier Peak, you can access your funds by transferring to your checking account (up to six times per month), ACH or in person. We also offer the Glacier Edge Money Market account for students, which earns the same rate as our top tier money market with a $100 minimum.
Certificate of Deposit (CD)
Certificate of Deposits (CDs) are similar to savings accounts in that they are insured and thus virtually risk-free; (CDs are insured by the National Credit Union Administration (NCUA). They are different from savings accounts in that the CD has a specific, fixed term ranging from 3 months to 5 years. The CD is held until maturity, at which time the money may be withdrawn together with the accrued interest.
Wondering what term CD is best for you? Consider laddering your savings into short and long terms so that you have money maturing at different times. View our current CD rates.
Power of the Ladder
With a CD Ladder Strategy, you don’t just purchase a single CD for a set amount of time.
Instead, you “ladder” your money over different maturities. By purchasing shorter and longer
term CDs, you spread out your interest rate risk.
As each CD matures you should consider reinvesting in a new CD with a term equal to the
longest term CD. This strategy allows you to take advantage of the higher rates normally
associated with longer-term CDs while maintaining more frequent access to part of your funds.
- Example of a 2-Year strategy with maturities every 6 Months:
Invest equal amounts into 6-month, 12-month, 18-month and 24-month terms. When the
6-month CD matures, invest the funds in a new 24-month CD. Similarly when the 12-month
CD matures, invest the funds in another new 24-month CD, and so on. At the end of two years
you’ll have four, 24-month CDs with a CD maturing every six months.
- Example of a 5-Year strategy with maturities every 12 Months:
Invest equal amounts into 1-year, 2-year, 3-year, 4-year and 5-year terms. When the 1-year
CD matures, invest the funds into a new 5-year CD. Similarly, when the 2-year CD matures,
invest funds in a new 5-year CD, and so on. At the end of 5-years, you’ll have five 5-year
CDs maturing every year.
The examples above can be modified to fit what works best for you. Talk to an MSR to discuss
your options. If you stick with the CD Ladder Strategy, you’ll get a better rate of return overall,
and you’ll have CDs coming due every 6 or 12 months.
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