The ABCs of CDs

A is for Assurance

If you’re looking for a way to grow your savings without taking on risk, a CD is one of the most reliable tools available. Unlike stocks or other investments that rise and fall with the market, these options offer something rare in today’s financial world: certainty.

When you open a CD, you agree to set aside a specific amount of money for a fixed period of time. In return, you earn a guaranteed rate of return for the entire term. That means no surprises or fluctuations, and no worrying about market changes. From day one, you’ll know exactly how much you’ll earn and when you’ll get it.

And because Red Rocks Credit Union CDs are federally insured by the NCUA, your funds are protected up to $250,000. It’s a level of safety that gives you peace of mind while your money quietly grows behind the scenes.

Think of it as a financial time capsule. Lock in today’s rate, let it grow over time, and open it later to find your savings have multiplied.

B is for Balance

Every saver’s journey looks a little different, which is why CDs come in a variety of terms and options to match your goals. The secret is finding the right balance between access and earnings.

When you open a CD, you choose how long you’d like to keep your money deposited, typically anywhere from a few months to several years. In general, the longer the term, the higher the rate. But that doesn’t mean you have to commit to a multi-year option to see meaningful growth.

Right now, Red Rocks Credit Union’s 10-month CD at 4.15% APY offers the perfect middle ground: short enough to keep your funds within reach, yet long enough to earn a strong return. It’s an ideal option if you want your savings to grow steadily through the end of the year (and beyond!) without sacrificing flexibility.

Here’s a quick way to think about your choices:

— Short-term CDs (3–6 months): Great for parking funds you’ll need soon while earning more than a traditional savings account.
— Mid-term CDs (10–24 months): A smart balance between access and higher earnings.
— Long-term CDs (36+ months): Best for bigger goals such as a home down payment, college savings, or future travel plans.

If you’re looking for even more flexibility, consider a laddering strategy. By opening multiple CDs with different maturity dates, you can enjoy both ongoing access and steady growth.

Pro Tip From RRCU: Use a 10-month CD as part of your laddering strategy. It offers a competitive rate and helps you stay flexible if your financial goals change in the year ahead.

C is for Confidence

In a world where the economy can feel unpredictable, confidence in your savings is priceless. That’s exactly what a CD offers—guaranteed growth you can count on.

CDs are especially powerful for goal-based saving. No matter if you’re planning a dream vacation or setting money aside for retirement, this option helps you stay disciplined while your money works for you quietly in the background.

And because Red Rocks CU is a member-owned credit union, you can feel good knowing your savings stay local, helping strengthen the same Colorado communities you call home.

Common CD Myths, Busted

Even though CDs have been around for decades, there are still a few misconceptions that keep people from taking advantage of them. Let’s clear up some of the biggest myths, so you can make informed decisions about your savings.

Myth #1: “CDs lock up your money for too long.”

Fact: You’re in control of how long your CD lasts. With flexible terms, from just a few months to a few years, you can choose what fits your goals.

Myth #2: “You need a lot of money to open a CD.”

Fact: CDs aren’t just for big savers. Many can be opened with modest minimum deposits, making them an easy entry point for anyone looking to earn a guaranteed return. At Red Rocks CU, we believe everyone deserves access to smart savings options, no matter their starting point.

Myth #3: “I’ll miss out if rates go up.”

Fact: CDs protect you from rate drops. And with a laddering strategy, you can take advantage of new rates as they rise while keeping part of your savings locked in at a great return.

Myth #4: “CDs aren’t worth it compared to investing.”

Fact: CDs aren’t meant to replace your investment portfolio. Instead, they complement it. They’re perfect for short- and mid-term goals where guaranteed growth matters most. Think of them as the steady anchor in your overall financial plan.

What Happens When Your CD Ends

Before your CD matures, Red Rocks Credit Union will notify you so you have time to decide what’s next. At that point, you can:

— Withdraw your funds. You’ll receive your original deposit plus all the interest you earned during the term. It’s a great time to use those funds toward a goal.
— Renew or reinvest. You can roll your funds into a new CD, so your money keeps working for you without interruption.
— Adjust your strategy. Some members use maturity as a moment to rethink their savings plan, especially if rates have changed or new promos are available.

Pro Tip From RRCU: Set a reminder a week or two before your CD matures. That way, you can review your options and decide whether to withdraw, reinvest, or ladder your savings for ongoing growth.

CDs Compared to Other Savings Options

There’s no one-size-fits-all way to save. Each option has its own balance of risk, reward, and accessibility. The key is understanding how a CD fits into your overall financial picture.

Savings Accounts

These are the most flexible options, perfect for everyday use and emergency funds. Your money is always available, but interest rates tend to be lower.

Money Market Accounts

Money markets often earn a bit more than traditional savings accounts and may offer limited check-writing privileges. They’re ideal if you want a mix of accessibility and slightly higher returns, though rates can still fluctuate over time.

Certificates of Deposit (CDs)

A CD gives you a fixed term and a guaranteed rate, so you’ll always know exactly what you’ll earn by the end of the period. Your money is locked in for the term you choose in exchange for a higher, stable return. It’s a smart choice when you don’t need immediate access to the funds and want predictable growth.

Investments (Stocks or Mutual Funds)

Investments can offer higher long-term returns, but they come with more risk. Market ups and downs can affect your balance, so they’re better suited for long-term goals and investors comfortable with some uncertainty.

Pro Tip From RRCU: If you’re saving for something within the next year or two, a CD strikes the perfect balance. It’s safe, simple, and steady.

How Red Rocks Credit Union Makes CDs Simple (and Rewarding)

At Red Rocks CU, our CDs are designed to make it easy to earn more on your money without adding complexity or risk.

With flexible terms and friendly guidance from our local team, you can open a CD that fits your goals and start earning steady returns right away. And right now, we’re making it even more rewarding to save.

For a limited time, Red Rocks CU is offering a special CD opportunity to grow your savings faster while keeping it completely secure.

— Term: 10 months
— Rate: 4.15% APY
— Availability: Launching November 20

This offer is a perfect way to put your savings to work before the end of the year.

Because at Red Rocks, we don’t just want you to save. We also want you to succeed. Our members deserve the confidence that comes from knowing their money is growing in good hands, right here in Colorado.

*APY - Annual Percentage Yield. Minimum balance of $500. Early withdrawal penalties apply. Fees or withdrawals may reduce earnings. Unless you withdraw or transfer the account funds at maturity or within the 10-calendar-day grace period, your account will automatically renew to a 6-month Certificate of Deposit (CD) at the non-relationship rate and terms available at that time for that term. APY, terms, and conditions are current as of 11/20/2025 and are subject to change without notice. Membership is required. CD = Certificate of Deposit. Federally Insured by NCUA.