Maximize Your Savings with the CDs

Unlock the potential of CDs for stable, high-yield savings.

For businesses looking to make the most of their cash reserves, Certificates of Deposit (CDs) offer a secure and high-yield savings option. Unlike a regular savings account, CDs offer fixed returns for a specified term, so that your business funds can grow without exposure to any market risks. Here’s how businesses can maximize their savings by leveraging the benefits of CDs.

1. Choose the Right CD that Fits Your Business Goals

CDs come in various terms and structures, making it essential to select one that aligns with your financial goals. For example:

• Short-Term Needs: If your business might need access to funds within a year, there are 6- and 12-month certificates that offer a quick return at a higher rate than just holding the funds in a savings account.
• Long-Term Planning: To build reserves for future projects or needs, consider longer-term CDs. These generally have higher interest rates compared to the shorter ones.

2. Take Advantage of Market-Linked Rates

Some CDs, like CWCU’s Flex12 CDx, are tied to external indices, such as Treasury Bill rates, which means the interest you earn adjusts with the market. This feature means your returns follow the pace of the economy, giving you an edge over simple fixed-rate accounts.

3. Ladder Your Investments for Flexibility

CD laddering is a strategy that involves splitting your money into multiple CDs with different maturity dates. This would allow you to have portions of your money available while still enjoying better interest for longer-term investments. For instance:

• Invest one-third in a 6-month CD, another third in a 12-month CD, and the final portion in an 18-month CD.

The beauty of a laddering approach is that when each CD matures, you reinvest or use the funds if needed, ensuring liquidity at no cost in terms of yield.

4. Take Advantage of Incremental Deposits

Some CDs allow additional deposits during the term. For instance, our Flex12 CDx enables businesses to make deposits of $2,500 or more at any time, making it easy to add surplus cash and maximize earnings without waiting for a maturity date.

5. Line Up Cash Flow with Scheduled Maturities

When the cash flow cycles of your business match the terms of a CD, funds are available if needed but still earn a better return. This is especially useful for businesses with predictable expenses, such as yearly tax payments or equipment upgrades.

6. Use CDs for Specific Savings Goals

CDs are good for:

• Building emergency reserves to pay for unexpected expenses.
• Financing for future business expansions or large purchases.
• Saving for tax obligations, ensuring funds are set aside while earning interest.

7. Reduce Risk While Maximizing Returns

The low-risk security of a CD is a great addition to mix things up a little in your portfolio. They're secure in that your principal and interest are covered under federal insurance through either the FDIC or NCUA depending on your institution. At Central Willamette, our deposits are insured by the National Credit Union Administration (NCUA).

Why Get a Central Willamette CD for Your Business?

Credit unions tend to be super competitive, offering higher rates at lower minimum deposit requirements compared to their more traditional banking counterparts. For example, the Flex12 CDx is extremely accessible at an entry point as low as $750 to start growing your business reserves of any size.

By adding CDs to your savings strategy, your business can enjoy stable growth, reduced financial stress, and a clear path toward achieving its goals. Ready to get started? Give us a call today to learn more about our competitive CD options and how they can help benefit your business.