What Your CD Test Score Means

If you’re looking for an investment that protects your principle while giving you a higher return than traditional savings accounts, Certificates of Deposit (CDs) are a smart option. They are FDIC insured which means that your money is protected by the US Government up to $100,000. To help you decide whether a short-, medium- or long-term CD is right for you, compare your test score to the chart below.

If Your CD Test Score is…

  • Under 70 points: You need a lot of liquidity, so a CD may not be right for you. Keep accumulating money in an investment savings account, like a money market account.
  • 70 to 80 points: You need some liquidity, but you can afford to lock your money in for a short period of time. Choose a short-term CD that matures in 7 days to 12 months, and match the maturity date to your needs.
  • 85 to 95 points: You will probably require access to your funds within the next 12 to 24 months. Select a medium-term CD that matures in 1 to 2 years, and match the maturity date to your needs.
  • 100 points or more: You can afford to take advantage of the higher interest rates a long-term CD yields. Consider a CD that matures in 2 to 10 years, and match the maturity date to your needs.

The above chart is for your information only. Be sure to consult a customer service representative before opening a certificate of deposit or money market account.

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