Making smart, safe choices is essential when you’re planning a financial strategy to grow your business’s wealth, especially if you’re new to investing or if you’re still feeling cautious after the 2008 recession. Investing in a certificate of deposit (CD) with Crestmark Bank is the perfect way to get started.
Putting your trust in Crestmark
At Crestmark, we provide a variety of financial solutions for businesses across the nation. And even though that may sound similar to what many banks do, Crestmark actually isn’t a bank in the traditional sense. Our financial organization was founded specifically to serve small-to-medium sized businesses that needed access to funding more traditional banks could not provide.
This led our founder, W. David Tull, to start Crestmark, which was approved as an FDIC bank in 1996. He wanted to solve this problem for smaller businesses by creating innovative financial solutions that would give them the funding they needed to be successful. It wasn’t long before Crestmark began receiving inquiries outside Michigan, our home base, and soon we were serving businesses all over the country.
Crestmark is built around delivering value and satisfaction to all of our stakeholders, from employees to clients and the community we serve. When you choose to invest in CDs with us, you’re choosing a strong bank built to serve your unique business needs. CDs are relatively simple investments, but that doesn’t mean you should expect less service from your team here at Crestmark Bank. We will be here for you every step of the way.
Understanding how CDs work
CDs are simple, timed deposits with a fixed interest rate. You pick a term (that’s the amount of time your money will sit in the CD and accrue interest) and when the term ends, you take your money out or you can roll it over into another CD.
During a term, the money you invest in a CD is unavailable to you. This means you need to consider how short—or long—you want the term to be. If you need access to your cash soon, a short term is best for you. If you’re in no hurry, a longer term will work.
It’s important to mention that you can take your money out of a CD early if you need to, but most banks will charge you a penalty fee which may negate any interest you’ve earned.
Longer terms offer better rates, helping you make more out of your money over time. Right now, Crestmark Bank is offering a very competitive rate of 1.70 percent APY for a 12-month term. A 60-month term CD has a 2.15 percent rate. If you need to go with a shorter term, our rates are equally competitive, and it’s an easy way to stretch your dollar.
A popular way to increase liquidity with CDs is a method called “laddering.” This is when you divide your investment among several smaller CDs at higher rates that mature at staggered dates. This strategy offers maximum growth and allows your funds to become available faster.
For instance, you may open one CD that matures in a year, a second CD that matures in two years, and a third CD that matures in three years. When the first CD matures, you roll that money into a new three-year CD. You do the same thing when the second CD matures. Ultimately, you end up with a three-year CD maturing every year for three years. You can also set up a five-year ladder to maximize earnings.
When you invest in CDs, there is no risk. CDs have fixed rates, and they’re insured by the Federal Deposit Insurance Corporation (up to $250,000), giving you even more peace of mind. CDs are not a wild ride on the stock market, which is why they make a smart investment for businesses that want to grow their capital in a simple, risk-free way.
Partner with Crestmark and start earning today
Crestmark is built on the foundation of helping small-to-mid-sized businesses succeed, whether that’s through lending or growing capital. When you open a CD with us, you can expect personalized service from beginning to end.
Our CD administrator, Beth Inda, can help you determine the kind of CD that’s right for your business needs, the amount you should invest, and the term length. Investments can be as low as $25,000 and as high as $250,000.
Once your CD is set up, you can sit back and focus on your business while your money increases over time. When the CD comes to maturation, it automatically renews, but you can take your money out or transfer it to another CD with different terms. It’s up to you. Whatever you decide, investing in CDs is a great way to grow your business’s money—and we look forward to working closely with you.
Visit our CD page to see Crestmark’s current CD rates.