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.

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Important! Keep your account safe from fraud

As fraud attempts are on the rise recently — especially related to unemployment funds — help us keep your account safe by following these guidelines.

Use your Simple Account only for your own personal use. Don’t share your account with others or receive funds on behalf of third parties.

Don’t share your username or password with others. Never give out your login information. Simple will never ask you to tell us your password — if any third party makes such a request, it’s an attempt at fraud.

Don’t open an account at someone else’s request. If someone else asks you to open a Simple Account — such as a real estate company, prospective employer, or someone you met online — it is likely an attempt at fraud.

Be alert for unemployment insurance fraud. You may be violating the law and the terms of your Simple Account if you receive deposits of unemployment funds on behalf of someone else. 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.

Don’t receive funds on behalf of a third party. Keep in mind that receiving funds on behalf of a third party violates the terms and conditions of your Simple Account; in such instances, we may restrict and/or close your account and hold the funds while we await direction from enforcement agencies.

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