Review: Nationwide CD Account Rates Let You Earn Almost 3X More

A savings account is a powerful tool that can help grow your money and put your financial goals within reach. But, it might take you longer to hit your target balance if you’re earning a low interest rate. Given the multitude of savings options available, you don’t have to accept pitiful interest earnings. Many people earn higher yields on their savings accounts, and with a little research, you can too.

Just about everyone starts off with a basic savings account. As your savings goals and plans change, you might need to consider other alternatives such as a certificate of deposit (CD). A CD is a type of savings account, but it’s also a type of investment. In fact, it’s one of the safest investments for your money because you can’t lose your deposit.

When you open an account, you’re agreeing to leave your money in the bank for a specific length of time. In other words, you’re letting the bank borrow your money in exchange for a higher interest rate. Also, the bank guarantees the return of your deposit plus interest. It’s the perfect solution if you don’t need immediate access to your cash.

Practically every bank and credit union offers CD products, but these options might not compare with Nationwide Bank’s CDs.

Benefits of a Nationwide Bank CD Account

If your present savings strategy isn’t yielding the return you desire or you don’t have the stomach to dabble in the stock market, open a Nationwide Bank CD. The bank offers CD rates higher than the national average, which might be exactly what you need if you’re saving for something big such as a house, a kid’s college education or a vacation. You can lock in an interest rate between 0.25% APY* and 2.00% APY*. Plus, you can enjoy other attractive features, including:

1. Multiple CD Terms: You can choose among nine CD terms, ranging from three months to 60 months. Interest earnings are based on the length of your CD and the amount of your deposit. To get the highest yield of 2.00% APY*, you’ll need to deposit at least $100,000 in a 60-month term.

2. Low Minimum Deposit: Deposit requirements for a CD vary by financial institution. Some banks require a minimum deposit of $1,000 or $5,000, which is out of reach for many customers. It’s a different story with Nationwide Bank — you can open a CD with as little as $500.

3. FDIC Insurance: You worked hard to earn money, and you naturally want to keep your investment safe. Funds in your Nationwide Bank CD are FDIC-insured up to $250,000 per depositor, so you don’t have to worry about losing your money if the bank goes out of business.

4. Option for Automatic Renewal: Nationwide Bank gives you the option of automatically renewing your CD at maturity. The bank sends a notification approximately 30 days before the end of your CD term. You can withdraw funds on the maturity date, roll them into a new CD, or Nationwide Bank can renew your CD for another term. The longer you keep the CD, the more you can earn.

5. CD Laddering: There’s a penalty for withdrawing money or closing a CD before maturity, which can equal as much as 30 to 360 days of interest on the withdrawn amount. To reduce the likelihood that you’ll need to take an early withdrawal, consider laddering your CD.

Here’s how CD laddering works: Instead of depositing all your cash into one CD, spread your cash and open multiple CDs with different maturity dates, perhaps every three or six months. As each CD matures, you can pull out your money or renew the CD. This strategy lets you access portions of your savings sooner.

Related: How a Certificate of Deposit Can Finally Help You Save Up for a Home

How to Open a CD With Nationwide Bank

To get started with your new savings strategy, visit Nationwide Bank’s website and complete an application for a CD. You have to be at least 18 years old to open an account. Additionally, you’ll need a Social Security number, a driver’s license or other valid identification, plus the routing number and account number of an existing bank account to transfer funds into your CD.

If you’re looking for a reliable, safe way to grow your money, you can’t go wrong with a CD from Nationwide Bank. Open an account today, and watch your money grow at an amazing rate.

*APY rates are current as of 04/24/2015

This article originally appeared on GOBankingRates.com: Review: Nationwide CD Account Rates Let You Earn Almost 3X More

This article by Valencia Higuera first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.