Savings vs CD accounts: Which should I choose?
Unsure if you should put your money into a Savings account or if a CD is a better option? A savings account offers you more flexibility and access to your funds, but a CD will probably provide you with a greater return. The answer mostly likely depends on the purpose of the funds and the timeline for when you need the funds.
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What is a savings account? A savings is an interest bearing account that allows you to make deposits or withdrawals as you please. The interest rate on this type of account is usually variable. |
What is a CD account? A CD or Certificate of Deposit, is an account type that establishes a contract between a bank and the customer. The bank guarantees a fixed rate for a specific period of time. The customer agrees to deposit their funds for a specific period of time. Ending this contract early may result in a penalty. |
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Is a savings account right for me? A savings account is ideal for someone who may need their funds within the near future or someone who is incrementally saving for something. It is also a great option to store a rainy day fund or an account to cover unexpected expense. |
Is a CD right for me? A CD is a great option for someone that has excess funds that they don't need immediate access to. This may be a desirable option for someone looking for a higher return than a savings account. |
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What are my savings options? Whether you just want a stand-alone savings, relationship savings or require special titling . . . Webster Bank will match you with the right product. |
What are my CD options? We have multiple options to fit your needs. |
| A 6 Month Liquid CD gives you fixed rate and the ability to withdraw your balance when you need it. | |
| A 3 year Bump Up CD allows you to increase your rate, once during the 3-year term, if interest rates increase. | |
| An IRA CD is another safe and secure investment option for your retirement plan. Pick a term between three months and five years and earn the highest rates when you have a linked Webster relationship checking account. | |
| A Traditional CD allows you to pick a term that works with your schedule. Terms between three months and five years. Earn the highest rate when you have a linked Webster relationship checking account. |
In reality, it may be an ideal strategy to do both. Most people want to be able to incrementally build their savings over time or need a rainy day fund. They may also have excess funds that they can set aside for a period of time that will earn a little more interest.
Need help picking an account?
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Visit one of our branches
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Call our Customer Care Center at (800) 995-9995