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Debunking with Texas Bay: CDs

There are numerous misconceptions about Certificate of Deposits (CD), and here at Texas Bay, we want to help you understand them better. Because getting fit is hard, but your finances shouldn't be.

What is a CD?

To put it simply, a Certificate of Deposit is a deposit where you earn interest on your savings. You open one with a fixed amount of money and then you add to it over time, but you may not withdraw it until the term is done. Each term is a specified amount of time that you decide when you open the CD account. You can choose from 6 months, 1 year, to 5 years, and anything in between, it's up to you.

Finances can be a mystery, but as your trusted financial partner, we intend to help make finances a breeze. So, let us help you debunk a few CD myths:
  • I will need a lot of money to open a CD. Not all do! Some can range between $500 to $1,000 and more. However, Texas Bay offers one with an even lower initial deposit of $100: our Save to Win CD. For every $25 you deposit a month you will automatically earn entries into monthly and quarterly cash prize drawings1. It's a WIN-WIN!
  • I could lose my money with CDs. Actually, with federally insured CDs, you are insured up to $500,000at Texas Bay Credit Union. There's no stock market crash losses because it's a CD that is backed by the government. 
  • The terms are too long. Terms can vary depending on the CD. Some of our CDs can be from 6 months to 60 months; we let you choose the time frame that fits your goal. Need to save for a vacation in 6 months or a wedding in 1 year then open the CD with the time frame that fits. 
  • There's only one type of CD. Definitely not. With Texas Bay, you have different types of CDs to choose from, and ones that can fit to your financial needs and goals. 
  • I will have a higher yield on interest on my savings account. Quite the contrary. Savings accounts currently yield up to 0.05%, or if you choose a Bonus Money Fund or IRA up to 0.08%3. The current rates for 6-11 month CD is 0.15%.

What's even better is that Texas Bay Credit Union offers a Save to Win CD that not only yields 0.15%4, but every time you deposit $25 monthly and quarterly, you get an entry to win up to $5,000!1

Save to Win vs. Regular CD

  • Save to Win rewards you for saving money in increments. It's the CD that pays you for SAVING
  • Typically, regular CDs have a term ranging between 6-60 months, but a Save to Win is at a fixed term of 12 months
  • Regular CD's require $1,000 minimum to open, but Save to Win only requires $100 minimum to open

Still not sure what's best for you? Schedule an appointment with us, and find the one that best fits your needs!


1 Your 12-month Save to Win CD not only gives you 4 entries into monthly and quarterly cash prize drawings when you open with $100 deposit, but in addition you will be gaining interest on your savings, and each additional deposit of $25 gives you more entries to win. Earn a maximum of 10 entries per month, 30 per quarter, the more you save the more chances you have to win.

2 Texas Bay Credit Union is federally insured by the National Credit Union Administration (NCUA), which is backed by the full faith and credit of the U.S. Government.  Your deposit/shares at Texas Bay are insured up to $250,000, an amount equal to the insurance protection offered by the FDIC. Generally, if a credit union member has more than one account in the same insured Credit Union, those accounts are added together and are issued up to $250,000; however, there are exceptions. Protecting your savings with the highest level of security available is one of Texas Bay Credit Union’s major objectives. That is why we combine your federal deposit insurance coverage with excess deposit insurance protection from Excess Share Insurance (ESI). In addition to your accounts being covered by the NCUA to a limit of $250,000, ESI provides an additional $250,000 of savings protection to each qualifying account.

3 Share and Share Draft Dividend rates and APY are subject to change monthly without notice at the discretion of the Board of Directors.

4 All Share Certificate dividend rates and APY are subject to change without notice.