CDs: a powerful tool for your business financial strategy

Architects at work

When you create a financial strategy for your business, don’t forget to include certificates of deposit (CDs) in your plan. These straightforward investments are simple to set up, involve little to no risk, and offer a solid return on your money.

Perfect for busy business owners

Most business owners have one thing in common: their calendars are full. Whether they are meeting clients, responding to inquiries, ordering supplies, or taking care of simple daily tasks, they are busy people.

When it comes to investing, business owners don’t always have time to learn about complicated investment tools and they’re not interested in taking a lot of risk with their capital. But they do want to make smart financial decisions. CDs are a perfect solution because they are easy to understand, take minutes to set up, and offer a solid return on your money.

Peace of mind

When you invest in CDs, there is almost no risk and the return is guaranteed. Your money—and your business—won’t be affected by falling interest rates, which means you don’t have to monitor the investment, worry about making changes to it, or losing what you’ve worked for. CDs are also insured by the Federal Deposit Insurance Corporation (FDIC), giving your money even more security, and you more peace of mind.

Easy to understand

CDs function by “locking in” an investment in return for interest rates that are higher than those offered by average savings accounts. The interest rate you lock in does not change during the course of your term. Because the money is not available while it’s in the CD, it’s important to consider how long your investment will be inaccessible. The investment term for a CD can be as short as 30 days, or up to five years. The longer your money stays in the CD, the greater the returns. It is important to note that you can take your money out of the CD before the term ends, but penalties apply for early withdrawal.

Slow and steady wins the race

CDs are not a wild ride on the stock market, making them a smart investment choice for businesses that want to grow their capital in a simple, risk-free way. With interest rates steadily gaining over the last decade, CDs take advantage of stable growth and predictable returns.

Start earning with CDs today

A Crestmark Bank CD expert can help you determine the right investment amount and term length to best suit your business needs. Initial investments can range from $25,000 to $250,000. Term lengths are also flexible, ranging from one month to five years. To learn more, contact our CD Administration team at (855) 267-6445 or by email at cd@crestmark.com. Click here to fill out the electronic version or print version of the CD Request Form.

Once your CD is activated, you can sit back and focus on growing your business while your money increases over time. When the CD matures, it automatically renews, unless you choose to withdraw your money or transfer it to another CD with different terms. It’s up to you. Whatever you decide, investing in CDs is a stable way to grow money for your business.

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