About Mid-Term CD Accounts
How to Choose a Mid-Term CD
Selecting the right mid-term certificate of deposit means calculating your potential interest earnings for a period between one and three years.
Through Raisin, you can access some of the best mid-term CD rates available nationwide — all from federally insured banks and credit unions.
When you're selecting the mid-term CD that's right for you, there are a few factors you should take into consideration.
Interest rate and APY: Possibly the most important is the CD's Annual Percentage Yield (APY). This value represents the base interest rate of the CD as well as potential interest earnings based on how the interest is compounded, offering you a clear view of what your earnings could look like.
Security: It's key to make sure your deposits are held with a federally insured financial institution, giving you the confidence that your money is protected up to the institutional limits. All banks and credit unions on the Raisin platform are insured by the FDIC or NCUA, respectively.
Minimum deposit: Some institutions may require a minimum deposit to open an account or to earn a specific APY. With Raisin, that minimum deposit is always $1.
Fees and penalties: Because CDs have a fixed term, there are often penalties with early withdrawal. Always be sure to understand your product's terms before depositing funds.
Compound interest schedule: Interest can compound at different frequencies for different CDs. Be sure to take a look to see if the CD you're interested in compounds interest daily, monthly, or annually, as this can impact your earnings.
How Does a CD Account Work?
Certificates of deposit are relatively simple savings tools as long as you understand the product's term and interest rate. Let's take a look at how a CD works, how it differs from other types of cash deposits, and what safety and security measures can help you make sure your investment is protected.
Fixed Term And Interest Rate
What sets a CD apart from other deposit products is that it has a fixed term and interest rate. This means that when you open a certificate of deposit, you agree to deposit your cash for a set period of time and, in exchange, earn a fixed interest rate for the entirety of that term. These terms can range from one month to several years, which can help you secure guaranteed returns on your cash — something few other investments can promise.
Because of their fixed terms, CDs tend to have the top interest rates among deposit products, making them a potentially great option during periods of interest rate volatility.
Maturity
The date your certificate of deposit's term ends is known as its maturity date. Once your funds reach maturity, there are usually a few options available to you.
Certificate of deposit rollover: Rolling over your CD into a new one with a new term can mean extending your earnings and continuing to earn. Once your CD rolls over, keep in mind that the interest rate may be different than that of your previous term.
Certificate of deposit withdrawal: You may also withdraw your funds and interest earned at the end of your CDs terms, offering you the opportunity to spend your cash or invest elsewhere.
Types of CDs
There are different types of CDs that may work better based on your own savings goals:
Fixed-term CDs: The most common certificate of deposit offering, fixed-term CDs offer a fixed interest rate for a set term, with penalties for withdrawal before the end of that term.
No-penalty CDs: No-penalty CDs have a similar structure to fixed-term CDs, with a set interest rate for a set period of time. However, they're typically more flexible, allowing for withdrawal prior to the maturity date without a penalty. In exchange, these CDs typically have slightly lower interest rates.
Safety Measures
Certificates of deposits are generally considered a safe, low-risk savings product. In addition to offering guaranteed returns, one of the greatest benefits of CDs is the availability of federal deposit insurance. All CDs offered on the Raisin platform are covered by insurance from either the FDIC or NCUA up to the per-institution limits. This means that in the event the bank or credit union offering the CD fails, your deposit is insured up to $250,000 per depositor, per account, per insured institution.
Liquidity
Finally, the liquidity of funds in a certificate of deposit sets them apart from other deposit products and is crucial to take into account before depositing funds. Here are how CDs and savings accounts differ in liquidity:
CD accounts: Certificates of deposit come with fixed terms, meaning that funds generally cannot be accessed during that period without incurring penalty feeds. These deposits make more sense for longer-term savings that you want to grow but not necessarily access during the CD's term.
High-yield savings accounts: You may have limits on the number of withdrawals that can be made in a month (accounts on Raisin have no monthly withdrawal limits), but high-yield savings accounts are considered more liquid than certificates of deposit.
Benefits of Certificates of Deposit (CDs)
Certificates of deposit, also known as CDs, are a type of deposit account offered by banks and credit unions. CDs allow you to earn interest on your money like other deposit accounts, such as a savings account, but there are some key aspects that make CDs unique. Notably, CDs tend to offer among the highest available interest rates of all banking deposit products.
Unlike savings accounts or money market accounts, you can deposit a set amount of money into your CD account and commit to leaving your money there for a fixed period of time. Terms may last as little as three months, or as long as five years (60 months) or even longer. In return, you'll earn a fixed amount of interest based on a predetermined interest rate. The rate of a CD typically does not change during the term, which is why you may see the product called a fixed-term CD. Another type of CD is a no-penalty CD, which gives the owner more flexibility to withdraw funds before the CD's maturity date.
When the CD term is up — when the product has reached maturity — you’ll be able to withdraw your original balance plus any interest earned, or opt to rollover all or part of those proceeds into a new CD with a new term. A key benefit of opening a CD is you’ll know exactly how much of a return you’ll receive when your money is ready to withdraw at the maturity date you selected.
CD Accounts vs. High-Yield Savings Accounts
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Tips for Using Certificates of Deposit
There are a host of advantages to leveraging certificates of deposit (CDs) to boost your savings. You are likely to earn more interest with a CD compared to that of a competitive high-yield savings account. Plus, the interest rate you earn for the duration of the CD term won’t fluctuate over time. And you can pick a term to fit your needs. This feature allows you to structure CDs in sequences, such as the CD ladder, which provides periodic access to savings while tapping the highest available interest rates of the longest-term products.
Click the button to read more about how to maximize your savings with CDs.
What Is Raisin?
Raisin brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.
Safety
Funds deposited into any of the savings products available through Raisin are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.
Choice
Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.
Convenience
One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.
How Raisin Protects Your Money and Personal Information
Federal Deposit Insurance Corporation
All participating banks are members of the FDIC. Deposits in participating banks are insured by the FDIC up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured bank, for each deposit account ownership category.
Click to learn more about FDIC insuranceNational Credit Union Administration
All participating credit unions are insured by the NCUA through its Share Insurance Fund. Deposits in participating credit unions are insured by the NCUA up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured credit union, for each deposit account ownership category.
Click to learn more about NCUA insuranceCybersecurity is a top priority at Raisin
We invest in a variety of technologies to protect our customer’s data, privacy and transactions. These include multi-factor authentication, encryption, and web application firewall advanced internet protection technologies. We are a SOC 2 certified organization, which means we have met the requirements outlined by the American Institute of Certified Public Accountants (AICPA) to ensure that we have the controls in place to keep customers' data secure and private.
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FAQs
Raisin is a digital platform that gives savers unparalleled access to a variety of deposit products through the convenience of a single account, helping you unlock the growth potential of your cash savings.
Raisin customers use the platform to fund federally insured deposit products offered by numerous U.S. banks and credit unions with a wide range of maturities and APYs (annual percentage yield), allowing you to build a savings strategy to suit your earning and liquidity needs.
Raisin is not a bank. It provides the digital “storefront” where banks and credit unions can promote their deposit products.
Raisin is operated by Raisin LLC, a 100% subsidiary of Raisin GmbH, a trailblazer for open banking in the deposits and investments space. In the U.S., Raisin helps banks and credit unions improve their deposit funding by offering national reach for their retail deposit products, and provides savers with better access, more choice and higher convenience when evaluating savings products from FDIC insured banks and NCUA insured credit unions.
Your Raisin account gives you access to savings accounts and certificates of deposit offered by a variety of banks and credit unions with the security of federal deposit insurance. These products include:
High-yield Savings Account (HYSA). As its name indicates, this account type functions like a traditional savings account — with typically no restrictions on depositing and withdrawing funds — but earns interest (or dividends in the case of credit union savings products) at rates that are higher than the national average for standard savings accounts.
Money Market Deposit Account (MMDA). Also known as a money market account or MMA, this type of savings account offers a varying rate that allows you to earn interest (or dividends) on your funds with maximum flexibility for withdrawals. Like a HYSA, an MMDA offers features of a traditional savings account with typically higher returns.
No Penalty CD. Through the flexibility of a No Penalty CD, you can lock in a competitive rate for a fixed term with the option to make a full withdrawal without having to pay a penalty for the early termination. Terms and conditions may vary by product. Please see specific product terms for more details.
Fixed Term CD. With this longstanding savings vehicle, funds are held for a fixed term, and a competitive APY (annual percentage yield) provides safe, predictable earnings. In contrast to No Penalty CDs, typically you are charged a fee if you do not complete the full term of the Fixed Term CD.
Interest (or dividend in the case of credit union savings products) is compounded daily and posted to your account monthly.
The short answer is yes! Raisin exclusively partners with FDIC-insured banks and NCUA-insured credit unions.
For Raisin customers who hold savings products offered by one of our partner banks, funds are insured by the FDIC up to the maximum amount in accordance with and as permitted by law at each bank holding their funds. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per account ownership category. Ownership categories as defined by the FDIC include single bank accounts (owned by one person/depositor) and joint bank accounts (owned by two or more persons/depositors). Revocable trust accounts and some types of retirement accounts (e.g., IRAs) are among the other ownership categories covered by FDIC insurance. All deposits you have at a bank — whether made through Raisin or otherwise — count toward the deposit insurance limit. If funds held at a bank in a certain ownership category exceed the coverage limit, then the amount in excess of the limit will not be insured.
For Raisin customers who hold a savings product offered by one of our partner credit unions, funds are insured by the NCUA through its Share Insurance Fund. According to the NCUA, each credit union member has at least $250,000 in total coverage. The Share Insurance Fund insures individual accounts up to $250,000. Additionally, a member’s interest in all joint accounts combined is insured up to $250,000.
At Raisin, cybersecurity is our priority. Raisin is a SOC 2 certified platform, meaning it has been validated by outside auditors across five (5) key information security principles. We also use a variety of measures to protect our customers' data, privacy and transactions, including:
• User authentication. The Raisin platform uses multi-factor authentication combined with leading authentication technology to validate our customers’ identities.
• Data encryption. Your personal information is encrypted in-transit and at rest using advanced cryptographic security algorithms.
• Site protection. Web application firewall advanced internet protection technologies are implemented to protect Raisin.com from malicious actors, botnets and denial of service attacks (DDOS).
• Monitoring. An always-on information security monitoring platform detects and alerts us to information security events.
• Assessments. Our platform undergoes vigorous security assessments and testing throughout the lifecycle of application development, from architecture planning to production phases.
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A. Check out our savings marketplace and choose a product in which you would like to deposit money.
B. Create your username and password.
C. Complete an application and, after successful identity verification, link a bank account from which to fund your first savings product.
D. Start earning interest as soon as your money is received by the bank or credit union offering the savings product you selected.
Any questions or concerns? Email us at support.us@raisin.com.
All deposits and withdrawals are completed within one to three (1-3) business days. After the initial deposit a withdrawals limitation for the first few business days may exist.
Business days are Monday through Friday excluding U.S. bank holidays.
For products offered by banks, all necessary registration is handled when you become a Raisin customer. One of the many benefits of our platform is that you can open a single account and earn competitive interest rates from banks in the Raisin network. When you select and fund a savings product offered by a credit union, there is an additional step of becoming a member. Raisin makes that process quick, easy and free. You still have one Raisin login and can view all your savings products in one convenient dashboard.
The current APY for your savings products can always be viewed on the Account Overview page when you are logged in to Raisin. This information also appears on monthly statements.
You cannot currently link your Raisin account to a third-party app, but we may offer this feature in the future. For now, you will not be able to link your selected savings product to a third-party app even if the bank or credit union offering that product does so outside of the Raisin platform.
Email: support.us@raisin.com
|Call: 844-994-EARN (3276) (Monday to Friday from 9:00 a.m. - 4:00 p.m. ET)
The Raisin name and logo are trademarks of Raisin GmbH. All other trademarks, logos, marks, and brand names are the property of their respective owners — used with permission.
© 2024 Raisin GmbH. All rights reserved.
*APY means Annual Percentage Yield. APY is accurate as of {todayDate}. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank or an NCUA-insured credit union, and does not hold any customer funds. Funds deposited through Raisin are exclusively held at federally insured financial institutions. FDIC or NCUA deposit insurance coverage covers the failure of partner banks and credit unions on the Raisin platform.
Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered through Raisin.com. Central Bank of Kansas City (CBKC), Member FDIC, d.b.a. Central Payments is the Service Bank. CBKC, Lewis & Clark Bank and Starion Bank, each Member FDIC, are the Custodial Banks.