Certificate of Deposit

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1. What are your financial goals?

   Make a financial plan before investing. It is important to understand what your portfolio looks like and what your goals are.

   Look at each option carefully to avoid penalties for early withdrawals.

2. When is the maturity date?

   The maturity date is dependent upon each CD duration, ranging anywhere from 3 months to 48 months after the date of issuance.

3. Are CD rates fixed or variable?

   Our CDs are only offered with fixed rates, meaning there is a set interest rate for the life of the CD.  The only exception to this rule is our "Step Up" CD which allows you to change the interest rate of your CD once during its life.

4. Will my CD be FDIC Insured?

   Custer Federal State Bank is FDIC insured up to $250,000 per depositor, per account ownership category.

5. How will interest be paid?

   Interest on CD's compounds semi-annually.  You also have the option to have your interest paid out monthly, quarterly or semi-annually via check or transfer.

6. What is "laddering"?

   “Laddering” CDs is a term used for when a customer buys more than one CD with different maturity dates. The customer could purchase a CD that matures in year 1, year 2, year 3, etc.

   The reason for "Laddering" CDs would be to take advantage of future interest rates and to avoid tying up funds for an extended period of time.

7. Is there a penalty for early withdrawals?

   A penalty will be applied for early withdrawals based on the CD's current balance, the amount withdrawn from the CD, the CD's interest rate, and the CD's term.

8. What is the minimum amount required to open a CD?

   The minimum balance to open a CD at Custer Federal State Bank is $500.

9. What types of CDs does Custer Federal State Bank offer?

   Custer Federal State Bank offers CDs in 3, 6, 12, 18, 24, 30 and 48 month durations.  We also offer a 36-month Step-Up CD.

   *Find our interest rates on our Rate Sheet.

10. What is a Step-Up CD?

    A Step-Up CD allows CD owners to take advantage of fluctuating interest rates and change a CD's interest rate once during its lifetime.