Are CDs Still a Good Investment?

Ready to kick off this new year—and decade—with a resolution to save more? If you’ve done your homework, you probably noticed that certificates of deposits (CDs) are consistently among the most debated ways to save. Some praise their security, while others are wary of their lack of flexibility. Who’s right? Let’s examine both schools of thought:


  • CDs typically offer substantially higher rates than traditional savings accounts, so you’ll earn more on your money.
  • Fixed-rate CDs are a safer way to invest your money than riskier avenues, like stocks or variable-rate savings accounts that are subject to the rise and fall of the market.
  • You can build short-term wealth by putting money you plan on strategically investing later into a CD now, where it will earn higher interest than in a basic savings account.


  • Once you open a CD, you’re committed to tying your money up for a set term, which can be anywhere from six months to years. If an emergency arises and you need to access your money, you’ll likely be charged an early withdrawal penalty fee.
  • Most CDs won’t let you take advantage of future rate increases that would produce higher yields. In fact, FCB is one of the few financial institutions that allows you to “bump” your rate for a higher one during your current term (twice, to be exact).
  • While CD rates are more competitive than those of basic savings accounts, yields typically just keep pace with inflation, so you may be breaking closer to even.

So, are CDs still a good investment? That all depends on your financial situation and personal banking style. If you’ve decided that this higher-yielding, secure savings solution is right for you, FirstCapital Bank of Texas’ Fixed-Term or Two-Year Bump CD may be a great way to meet your financial goals. Learn more and visit your local branch to open yours today!