A certificate of deposit, or CD, is an interest-bearing
deposit account. However, unlike a savings deposit
account in which the interest rate may fluctuate, a CD
investment is guaranteed a specific rate of return.
The interest rate on a CD is higher than on a savings
account because the investor, in exchange for receiving a
guaranteed rate of return, commits to a specified period of
time (the "term") during which he will not withdraw his
investment. Common terms for CDs range from 30 days to
5 years. With most CDs, withdrawing any of the
investment before the end of the term (the "maturity date")
will incur an often substantial early withdrawal penalty.
Like all other financial instruments offered by the First
National Bank of Dave... CD's also offer a high level of
All CD's purchased through FNBD come with an APR of
141.00% paid monthly with a full maturity date of 2 years.
They are similar to our high interest savings accounts,
but they are locked in for a 2 year period.
Upon receipt of payment, you will receive your Certificate of Deposit backed by stock in the FDIC (Financial Domination
Insurance Company). You will begin receiving your interest payment requests on or about the 1st of each month. You may
surrender your CD at anytime before the 2 year maturity date, however you will suffer a 500% face value surrender fee.