Certificates of Deposit: Timeless Savings Tools for Your Goals

Even though finance trends come and go, some tools stay consistent, like the simplicity and safety of a CD. If you're saving for something with a clear timeline such as a down payment, tuition, or a major trip — CDs offer a guaranteed return without surprises. Here's how they can fit into your plan.

A Certificate of Deposit (CD) is a type of bank–issued savings vehicle where you agree to leave a lump sum untouched for a fixed period. In return, the bank pays you interest at a set rate for the duration of that term. It’s a way to grow your money with total predictability.

Keep in mind:

• Access is limited: Withdrawing early may trigger a penalty, so it's best for funds you know you won’t need until the end of the term.
• Ideal for specific goals: Whether your timeline is short (like six months) or longer-term (up to five years or more), a CD can align perfectly with your savings timetable.

M&T Tip: See M&T’s Savings & CD options and compare terms to find the one that fits your goals.

CDs offer benefits beyond just earning interest:

• Guaranteed growth: You’ll know exactly what your return will be.
• Safe savings: Deposits are insured only when held at FDIC-insured banks.
• No monthly maintenance fees: More of your money goes toward growth.
• Pairs well with other accounts: Use a CD alongside an M&T Relationship Savings Account or Money Market Account for liquidity.

M&T Tip: If you’re managing both everyday expenses and long-term goals, pair your CD with a personal checking account to help your savings and spending stay organized.

• Low minimums: Open a CD with just $1,000.
  
• FDIC protection: Your deposit is backed up to maximum limits.
• Various term options: Pick terms that align with your needs—from just a few months to several years.  

You can also further customize your approach by blending a CD with a Relationship Savings Account for emergency liquidity.

1. Match terms to your goals
Saving for tuition next year? A short-term CD may be best. Saving for a wedding in three years? A longer-term CD locks in your return.

2. Create a CD Ladder
Open multiple CDs with staggered maturity dates. As one matures, you can use the funds or reinvest. This keeps money accessible while still growing at fixed rates.

M&T tip: Use our Savings Calculator to see how your ladder could grow over time.

3. Combine products for flexibility

M&T Tip: Use a CD for long-term savings, a Relationship Savings Account for short-term access, and M&T Money Smart to track your progress automatically.

M&T offers resources to make saving simple:

• Savings & CD Options – Compare accounts and terms in one place
• Savings Calculator – See how your deposit grows
• Money Smart – Track spending and savings with ease
• Financial Education Center – Articles and tips to sharpen your money skills