Savers may want to lock in high interest rates for the long haul before they likely head lower later this year.
But is 100 years too long?
Concord, New Hampshire-based Walden Mutual Bank is finding out. The financial institution is offering a100-year Local Impact Certificate of Deposit (CD) paying a fixed 4.75% annual interest rate.
The CD is open to anyone with $1,000 and up to $150,000 to invest and is Federal Deposit Insurance Corp (FDIC) insured up to $250,000. The CD allows people to invest alongside Walden to support local agriculture, specifically lending to food and agriculture businesses in New England and New York, the bank said.
“A five-year CD is common, a ten-year CD is a rarity, and a 100-year CD is one-of-a-kind,” said Mary Grace Roske, spokeswoman at CD rates comparison site CDValet.com. “Walden Mutual has created a unique opportunity for people who want to align their values — environmental responsibility, in this case – and their savings, and it’s a creative spin on socially responsible investing.”
Learn more: Best current CD rates
What is the 100-year CD?
Here are the details:
- Minimum investment of $1,000 up to $150,000 per individual or organization:
- Fixed 4.75% APY for the 100-year life of the CD
- FDIC insurance up to $250,000
- A completed beneficiary form is mandatory at account opening
- You may withdraw your entire deposit at any time by request, subject to a penalty of 10 years’ interest. If you withdraw the CD before 10 years, the penalty will reduce…
