Certificate of Deposit 101

Learn how to build your savings with a CD.

Budgeting and planning
March 04, 2020
Couple on computer reviewing Certificates of Deposit exciting details

Certificates of deposit explained

In short, a CD is a savings certificate with a fixed interest rate and maturity date. Sometimes called a share certificate by financial institutions, a CD is a safe and easy way to lock in a rate and ensure a predictable return on your savings.

Early withdrawal penalties may apply. See the Terms and Conditions for more details. Other fees may apply, and fees may reduce earnings.

Person sitting outside relaxed knowing her longer term CD has a higher interest rate

How CDs work

When opening a CD at TCF, make a minimum deposit of $500 and select the term you want from a variety of options, ranging from 3 months to 10 years. With CD interest rates, a longer term typically means a higher interest rate. So a 5-year CD will typically offer a better rate than a 1-year CD. Check out our current CD rates.

Man enjoying the company of two children while knowing his CD balance will be there for them

When you might choose a CD

There are many benefits to a certificate of deposit, but the main advantage is predictability. With a fixed interest rate, you know exactly what your new balance will be when the CD matures.

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