Certificates of Deposit
A certificate of deposit is an interest bearing account where the interest rate is locked in for a specific period of time. Currently, the Farmers State Bank of Aliceville offers 6 month and 1 year CDs. There is no minimum balance to open a CD and after account is opened, deposits into or withdrawals from the account cannot be made until the maturity date. The interest rate for the account is fixed and will be paid until the maturity date of the certificate. Interest can be compounded and credited to the account or paid by check.
If any of the deposit is withdrawn before the maturity date, a penalty may be imposed. If the account is a 6 month CD, then the penalty is 30 days interest. If the account is a 1 year CD, then the penalty is 90 days interest.