What's a CD?

What's a CD?


CDs, or Certificates of Deposit, are time-based accounts where you commit to leaving your money in an account for a set amount of time (say, 12 months). In return for keeping money in this account, you earn a fixed rate of interest. At the end of the term (also called “maturity”) your initial deposit plus interest earned is released back to you. You can then choose to purchase a new CD or use the money however you’d like. Simple’s CDs are also a bit unique, as we offer no-penalty CDs.

What is a no-penalty CD?

Generally, any withdrawals from a CD are penalized. A no-penalty CD does not charge a penalty for withdrawing funds early. However, there are some important limitations. You cannot make partial withdrawals from Simple’s No-Penalty CD and you can’t close your CD within the first 7 days of opening. You should know too, that if you withdraw the funds from your CD early, the CD will be closed and you’ll forfeit the current months accrued interest and your locked-in interest rate for your CD.

Here are some quick facts about CDs at Simple: 

Requirements and limitations 

  • You must have an open Simple Checking Account in order to have/maintain a CD.
  • You can have up to 5 CDs open at one time, with a grand total of up to $250,000 tucked away across CDs.
  • Minimum amount to open: $250.

Terms and Interest 

  • We currently offer one term: 12 months. 
  • You can find our current interest rate for CDs here or in the app.


What if I want a CD with Simple but I don't have a Simple checking account?
You must open a primary Simple Checking Account first before you can open a CD. In addition, your primary Simple Checking Account must stay open for the CD’s term.

Do you have minimum or maximum funding requirements?
We do! Our minimum opening balance required to open a CD is $250. You can choose to have up to 5 CDs at a time totalling up to $250,000.  

What are your term lengths?
We currently offer CDs with a term of 12 months.

Do you charge any fees for opening a CD?
We do not charge any fees for opening or maintaining a CD. 

How much interest will I earn on my CD?
Interest earned on your CD will depend on how much you deposit and the CD term. When you open a CD you agree to a set interest rate, and you lock in that interest rate for the length of the term. You can forecast your earnings by using any online CD interest calculator.

Can I add money to my CD later if I choose?
You can't add money to a CD once it’s open. But you can open another CD and have up to 5 CDs at a time.

What happens if I withdraw my CD funds early? Are there any penalties?
You are not permitted to withdraw your funds within the first 7 days of opening, but after the 7th day, you can close your account anytime without penalty.

What happens if I have a CD but want to close my Simple Checking Account?
We require that you keep your primary Simple Checking Account open while your CD is open. If you still want to close your primary Simple Checking Account, we also require that you close your CD.

When will I get my interest? What happens after the term length has passed? 
Interest is credited to your CD account on a monthly basis. When the CD reaches maturity, your initial deposit amount plus earned interest is automatically transferred to your primary Simple Checking Account, thus closing the CD.

How do you calculate interest?
Interest is compounded daily and credited monthly.

Are the funds in my CD safe? Are they FDIC insured?
All of Simple’s accounts, including CDs, are insured by the Federal Deposit Insurance Corporation (FDIC) up to legal limits. Check out our article on FDIC insurance if you have any questions. 

Will you do a credit check to open a CD? / What does “subject to approval” mean?
Simple’s deposit products, including CDs, are not subject to credit approval. In order to have a CD with Simple you must first have a Simple Checking Account. When you apply for a Simple Checking Account your application is subject to approval based on our defined security and risk standards.

Why are the CD rates lower than the PGA rates?
While it’s often true that CDs offer a higher rate in exchange for keeping your money in the account for a set time, the current interest rate environment affects what rates banks can offer. However, the fixed rate of a CD means you’re guaranteed a certain return—you’ll know how much you’re going to earn over the term of the CD and the interest rate won’t change unexpectedly with the volatility of the rate environment. And if you choose to open a CD and change your mind later, there’s no penalty to close it.

Where can I find a statement for my CD?
Simple does not offer CD statements at this time.

Did you find this article helpful? Yes / No
Aw man. Thanks for letting us know!

Important! This account is for your personal use only

An increasing number of customers are being targeted by fraud scams. Before you apply, review these guidelines to help prevent you from being involved in fraudulent activity.

Do not open an account on behalf of someone else
If anyone asks you to open a Simple Account to receive funds, it is an attempt at fraud. Common fraud attempts include requesting that you open an account to receive a gift or bonus offer, obtain a job or job training, or help someone else receive funds (such as unemployment benefits).

Do not share your login or account information with anyone
Neither Simple nor any other legitimate institution will ever ask for your account information. If any third party requests your Simple Account login information, it is an attempt at fraud. Sharing your account information with another person or allowing someone else to use your account to receive funds is a violation of the Simple Deposit Account Agreement terms and conditions and can expose you to fraud.

Actions we may take if fraud is suspected

We take fraud and security very seriously at Simple, and take rapid action in the instance of suspected fraud attempts.

We may freeze and close accounts
We may freeze and close accounts if fraudulent activity is suspected, including the following circumstances:

We will report fraud attempts
We are responsible for reporting fraud attempts to authorities, including attempted unemployment fraud. There are state and federal penalties for unemployment insurance fraud (including potential fines and incarceration). If you suspect you are a victim of unemployment fraud, contact the appropriate state fraud hotline listed here.

I acknowledge that I have read this notice Continue Application