Business Time Accounts (CDs)

What is a CD?

A CD is a financial product that usually pays a fixed interest rate for a set period of time, ranging from a few months to several years. This period of time is known as a “term". By depositing your money into a CD for a set term, you lock in your initial deposit principal and interest rate until your money matures.

You earn interest from the date of your opening deposit up to your maturity date. Your interest compounds daily and is generally paid monthly, although interest payments made quarterly, semi-annually, annually, or at maturity are also available. Interest can be re-deposited to the CD, transferred to a Wells Fargo checking or savings account, or paid to you via check if your CD has a minimum balance of $5,000.

Benefits of CDs

There are a number of reasons you may want to open a CD:

• Interest rates. CDs typically pay higher interest rates than other deposit products. Higher CD rates may be available for longer terms or larger deposited amounts.
• Guaranteed return. Since the interest rate of a Fixed Rate CD is set at account opening and does not change until the CD matures, you know exactly how much money you will earn during the term of your CD.
• Security. Your funds are FDIC-insured up to the maximum applicable limits.

You can withdraw your funds early if you need to, but you may be assessed an early withdrawal penalty or a Regulation D penalty. See additional details in the Wells Fargo CD rate and penalty disclosures below.

What happens when your CD matures?

Approximately one month before your CD matures, you’ll be sent a notice reminding you of the maturity date. At maturity, you'll have a ten calendar day grace period to renew or make any of the following changes:

• Change the term
• Make additional deposits
• Make withdrawals (as long as the remaining balance in the CD meets the minimum balance requirements)
• Close the CD

CDs renew automatically at maturity. Interest will not be paid during the grace period if you withdraw your funds and do not reinvest your CD.