Fixed Rate CDs earn a fixed rate for the entire term of the CD (1- and 3-years), determined at the time the CD is opened. The rate will appear on your deposit confirmation along with the annual percentage yield (APY). The minimum initial contribution is $250. Subsequent contributions are also $250. Additional contributions may not be made to existing CDs but may be made into an existing Account to purchase new CDs offered by College Savings Bank, a Division of NexBank. If you do not intend to contribute $250 at one time, you may contribute $25 per month through direct deposits from your bank or brokerage account, or $25 per pay period using payroll deduction. Direct deposit contributions or payroll deductions are held in an Accumulator Account until the balance of your Account reaches $250. Once the funds reach the $250 level, they are used to purchase a Fixed Rate CD.
The APY is published online, select the Rates tab for current rates. Account Owners will receive the published interest rate on the Contribution Date, except for online deposits where the Account Owner will receive the APY applicable at the time of the day when the online application and funding are complete. If you prefer to mail in a check to fund the CD, the Account will be opened at the applicable interest rate for the term selected on the Contribution Date.
Interest begins to accrue on the Contribution Date, and is computed based on the daily balance of the contribution and the actual number of days elapsed divided by 365. Interest is compounded and credited to your Account annually. Interest accrued on your Account will not be paid until maturity of the CD. No interest will be earned after maturity unless the CD is renewed for another term.
Contributions by check received before 2:00 p.m. Eastern time are credited on the same Business Day. Contributions by check received after 2:00 p.m. Eastern time are credited the next Business Day; Contributions by E-Check and credit card are credited on the next Business Day; and Contributions by ACH or wire transfer are credited on the Business Day we the funds.