Account Access and Services
What is a Certificate of Deposit (CD)?
How does a certificate of deposit work? Let us explain.
At Nationwide Bank®, we want to give you all of the information you need to make informed decisions about your money. From answering your questions about how a certificate of deposit works to providing information to compare rates and other features, we offer the helpful resources you need so you feel comfortable with your savings options.
Certificate of deposit definitions and other important information
If you’re considering opening a certificate of deposit account, we want you to have all the information you need to make the right choice for your longer-term savings goals. From learning how a certificate of deposit works to understanding the benefits and terms associated with your account, you can make the most of your money by choosing the interest-bearing savings account that fits your unique situation.
“Certificate of deposit (CD)” defined
A certificate of deposit, or CD, is an FDIC-insured interest-bearing account that is associated with longer-term savings. A CD gives you the flexibility of choosing how long you’d like to hold the CD, anywhere from three months to five years. At the end of this term, the CD matures, meaning you get your initial deposit plus the interest you have accrued. This makes a CD a great alternative to a traditional savings account when you are looking for higher yields and don’t need access to your funds for awhile.
Although accessibility to your savings is limited during the specified term, the longer you choose to save may equate to a more attractive interest rate.
CD interest rates are generally higher than traditional savings accounts and money market accounts, helping you earn valuable interest over time. You can also maximize your savings potential with unique strategies like CD laddering, where you gain access to your money at regular intervals.
What is a certificate of deposit? Your questions answered:
We’ve given our certificate of deposit definition and have explained the basics, now we want to answer your other questions regarding Nationwide Bank CDs.
Is a Nationwide Bank CD FDIC-insured1?
Yes, Nationwide Bank is a member of the FDIC, so the Federal Deposit Insurance Corporation (FDIC) insures all Nationwide Bank CDs. Certificates of deposit are fully FDIC-insured and protected1. This means that if the bank ever closes its doors, your money will be insured for the value, up to a specified limit1.
Is there flexibility with my terms?
Yes, our CD accounts offer flexible terms you can choose from. Terms range anywhere from three months to five years, giving you an array of maturity options to fit your saving needs, including a unique 18-month term. Annual percentage yields (APYs) may vary by term, typically increasing as the duration of your terms increase, meaning that the actual amount of interest that you earn will only increase as your term increases.
Are there any monthly maintenance fees?
No, having a Nationwide Bank certificate of deposit doesn’t require monthly maintenance fees. Unlike traditional savings and money market accounts, CDs do not charge a monthly maintenance fee if a minimum daily balance is not maintained for your account.
Is there a minimum opening deposit requirement?
Yes, there is a minimum opening deposit requirement of $500
to open a Nationwide Bank certificate of deposit. Unlike
money market accounts that require a $1,000 opening balance,
a CD only requires half of that, making it a great
alternative to other longer-term savings options.
Is online banking offered with a CD?
Yes, our free online banking services are offered with all certificates of deposits. You will enjoy secure and convenient online access to your account details anytime.
Will I have access to my money?
No, unlike a savings or money market account, our certificate of deposit products do not offer the liquidity that other savings options do. While a CD typically offers higher yields, it also restricts access to your money in order to give you more attractive rates.2 So, make sure you don’t need to access your funds before opening an account.
How will I be able to review my account statements?
We provide free online statements for your convenience and paper statements when you have a linked checking account.
Is there automatic renewal at maturity?
Yes, a Nationwide Bank certificate of deposit offers automatic renewal at maturity, meaning that if you do not withdraw your money, it will continue to earn interest and renew at the specified term.
How does a certificate of deposit work?
Now that you understand what a certificate of deposit is, let us clarify exactly how it works and offer a strategy that may benefit your long-term savings goals. First, consider your opening deposit amount, select a term your comfortable with and check out the associated Nationwide Bank interest rates.
You know how a certificate of deposit works. Now what?
You now have the information you need to decide if a CD account is right for you.
If you want to learn more about our traditional savings account or money market account options, we will guide you to the resources you need before you make your decision. Or, compare CD account features with other longer-term savings solutions using our convenient side-by-side chart.
And when you’re ready, we’ll help you open a CD account so you can start earning more on what you save today!
1 FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013.
2 Penalties for early withdrawal may apply.
Contact Nationwide Bank®
Call
Live customer care:
Monday – Friday
8 a.m. – 8 p.m. ET
Bank by phone 24/7
