Many CD products offer higher interest rates than other savings accounts, giving you more return on your money over time.  To earn the maximum return, you will want to avoid withdrawing funds until the term ends because you may incur a withdrawal penalty.

Additional funds cannot be added to the CD after the initial deposit. If you have additional money to invest, open another CD with at least $2,500. You are unable to add funds to your account once it’s opened. You can add additional money to your CD account at maturity. 

You can always withdraw funds from your certificate of deposit before it matures. However, you may be charged an early withdrawal penalty. This fee is typically calculated using a certain number of days’ worth of interest or a percentage of the total amount withdrawn.

The interest you earn on a CD is generally taxable, just like most other forms of income. Any interest earned must be reported on your federal income tax return and is subject to taxes based on your individual tax rate. You may also owe state or local taxes depending on where you live. Ocean will prepare and send you a Form 1099-INT and file a copy with the IRS. If you sign up for Ocean Online Banking, you can access the form as soon as it’s prepared to avoid the mail delay.

At maturity, your CD will renew automatically for the same term. It may be at a different rate. Or, you can withdraw your money.