Savings, Money Markets & CDs
Planning well means saving for the future and Ledyard has a variety of accounts to help you do that. When you're looking for a place to grow your savings with minimal risk, you've got options. All are FDIC insured but have different benefits depending on your goals.
A savings account allows you to deposit money and earn interest over time. It is a great option if you'd like to grow your savings separate from your checking account, even if you also have a Money Market or CD. It’s designed for the safe storage of funds not intended for daily expenses, offering a secure way to grow savings with minimal risk. See Options >
A Money Market Account combines the benefits of a savings account with the potential for higher interest rates. It doesn’t have a fixed term length and has easier access to funds than CDs. This account is particularly useful for building an emergency fund or managing cash reserves with the potential for higher returns than a standard savings account. See Options >
ADVANTAGES
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Higher Interest Rates: MMAs typically offer higher, tiered interest rates compared to regular savings accounts, allowing savers to earn more on their deposits.
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Liquidity and Accessibility: Unlike Certificates of Deposit, MMAs provide easier access to funds and provide a level of flexibility similar to a checking account.
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Low Risk: MMAs are generally considered low-risk investment options. The combination of FDIC insurance and conservative investment strategies used by banks to manage these accounts makes them a safe place for savings.
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No Lock-in Period: Unlike CDs, MMAs do not require a fixed term commitment. Savers can withdraw their money at any time without facing early withdrawal penalties, making MMAs suitable for those who need flexible access to their funds.
A CD offers a fixed interest rate over a specified term, offering a predictable return on investment. When you open a CD, you choose the term length, or how long you'll leave a set amount of money in the account. Overall, CDs are a great choice for investors looking for a safe place to invest their money while earning a predictable return. See Options >
ADVANTAGES
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Fixed Interest Rates: CDs offer fixed interest rates that are higher than those of regular savings accounts. This allows savers to know exactly how much interest they will earn over the term of the CD. This predictability makes it easier for savers to plan for future financial needs and goals.
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No Fees: Unlike some investment products, CDs do not come with management or administrative fees, allowing savers to keep more of their earnings.
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Variety of Terms: CDs are available in a variety of terms. This flexibility allows investors to choose a term that aligns with their financial goals and liquidity needs.
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Low Risk: CDs are considered low-risk investments because they are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed by law.
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Encourages Savings Discipline: Because CDs typically impose penalties for early withdrawal, they encourage savers to leave their money invested for the full term, promoting disciplined saving habits.
$250,000 FDIC coverage refers to the total of all deposits that an account owner has at each FDIC-insured bank, per ownership category.
**Usage at a non-Ledyard ATM will incur a $1.00 ATM debit item charge – except for Platinum Checking Account clients – and other institutions may impose an ATM fee.
***Please consult your tax advisor