Certificates of Deposit (CDs)

A certificate of deposit, or CD for short, is a type of savings account that lets you earn a fixed interest rate in exchange for keeping your funds locked in place for the duration of the specified term.

At OMB, we offer several different terms and often different CD specials.

• Fixed Term: You commit your funds for a specific period (e.g., 6 months, 1 year, 5 years).
• Higher Interest Rates: CDs typically offer higher rates compared to regular savings accounts.
• Early Withdrawal Penalty: Accessing your money before the term ends may result in a penalty.

CDs are a great choice for individuals who:

• Want a secure and predictable way to grow their savings.
• Have a specific savings goal with a clear timeline.
• Prefer low-risk investments over volatile options like stocks.

Torn between a Money Market account or a CD? Check out our article to help you decide which is best for you.

• Guaranteed Returns: Your interest rate is locked in for the duration of the term regardless of market fluctuations.
• FDIC Insurance: CDs are insured and backed by the full faith of the U.S. government up to $250,000 per depositor, per bank, providing peace of mind.
  • Learn about CDARS
• Goal-Oriented Savings: CDs help you stay disciplined by keeping your funds untouched until maturity.

When selecting a CD, consider the following:

1. Rate: Compare interest rates or APYs to maximize your earnings.
2. Term Length: Match the CD term to your financial goals.
3. Flexibility: If you’re unsure about locking up your funds, consider a no-penalty CD.
4. Minimum Deposit: Ensure you meet the minimum deposit requirements.

You can open most OMB CDs online or all OMB CDs by visiting any of our convenient Missouri and Kansas locations.

You have several options to place money in your CD using these sources:

1. An existing OMB account
   1. Paper check: Write a check to yourself or get a cashier's check from an OMB branch
       
   2. Electronic: Use an ACH payment to move money into the new CD account if opening online
2. A non-OMB account
   1. Paper check: Write a check to yourself from an account not with OMB or obtain a cashier's check from the financial institution
   2. Electronic: Send an ACH payment from your current financial institution to your new OMB CD account if you're opening it online
   3. Wire transfer: Ask your financial institution including any fees that may be associated.

The maturity date of a CD is the last day of its term. This date is calculated for each CD based on the day it was funded. You'll find the maturity date with the information provided during account opening or when you log into your OMB online banking account.

All OMB CDs also have a 10 calendar day grace period following maturity when funds can be added or withdrawn without a penalty. If the CD remains open during this period it will automatically renew.

Yes, we will provide you with information about the maturity of your CD in advance including how to roll it over into another term. This initial contact is usually a letter mailed to your current address on file and typically a branch representative will follow up with a courtesy phone call.

After initially funding your CD, you can add additional money to your CD only during the 10-day grace period after the CD matures.

If you're interested in adding money to your CD, consider a strategy that includes CD laddering. This method can you help you manage your CD portfolio by spreading out your funds with staggered terms and maturities.

You may request to close your CD at any time, but an early withdrawal penalty will unfortunately apply. This fee is a calculation of the amount of interest that would have been earned if the CD had reached maturity. Please contact us for specific details on closing a CD.

Annual percentage yield, or APY, is a calculation of the rate of return for your deposit over a one-year period that includes the interest rate plus compounding frequency. At OMB, all CDs compound their interest quarterly or, in the case of a 3-month CD, at maturity.

• Spread your investments across multiple CDs with different maturity dates.

• Benefits: Access to funds at staggered intervals and the opportunity to reinvest at higher rates.

   

• Split your investment between short-term CDs (e.g., 6 months to 1 year) and long-term CDs (e.g., 5 years).
• Benefits: This strategy offers a mix of liquidity from short-term CDs and higher yields from long-term CDs. When short-term CDs mature, you can either reinvest them at current rates or use the funds for other purposes.

• Invest in multiple CDs with the same maturity date.
• Benefits: Ideal for saving for a specific goal like buying a house, paying for tuition or a major life event. The CDs all mature when you need the funds, providing a lump sum at the right time.

• Use CDs within an individual retirement account (IRA) or other tax-advantaged accounts.
• Benefits: Earnings grow tax-deferred, which can be especially beneficial if you’re saving for retirement, which is perfect for savers who want stability and predictable growth.