Waldo State Bank Blog

Using Certificates of Deposits (CDs) on Back-to-School Costs

Using Certificates of Deposits (CDs) on Back-to-School Costs

As the back-to-school season approaches, many parents are financially preparing to purchase school supplies, clothing, gadgets, and required items.

At the same time, rising inflation isn't helping the back-to-school season be any more affordable for families. According to Deloitte, parents expect to spend $661 per child on back-to-school shopping this year! Thus, parents need an effective savings strategy today more than ever before.

One savings vehicle that may go overlooked is certificates of deposit (CD). Known for being safe and secure investment vehicles, CDs are flexible and allow the funds to be utilized for virtually any purpose. CDs leverage the benefits of compound interest; rates tend to be greater than what you can earn with a traditional savings account–but with comparable security and stability.

While many will turn to the stock market to grow their personal wealth, this isn't the only vehicle you can use to experience monetary gains. So, let's look at why CDs, like Waldo State Bank’s Scholastic CDs, are valuable for back-to-school and how you can open one today.

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Benefits of Certificates of Deposit

There are many reasons why people open a certificate of deposit account, including safety, predictability, competitive rates, and flexibility.


An appealing aspect of certificates of deposit is that they are FDIC-insured and safe investment vehicles compared to other options. When the CD matures, account holders will still receive the value they expected at the time of the purchase, even if the market fluctuates.

Compared to stock market investing, where the account's value depends on the state of the markets, value can fluctuate with market volatility. So, for parents hoping to save up for back-to-school spending, CDs are much more safe and secure.


Additionally, CDs are predictable savings options. Once an investor purchases a CD, they'll know exactly how much they will receive when it matures. On the other hand, investing in the stock market doesn't come with the same benefits. Investors don't have any guarantee of what the value of their account will be at a future date.

This feature of CDs is beneficial for parents saving for back-to-school shopping. CDs give them a reliable and predictable expectation for how much they'll be able to grow their money during a given time. Predictability helps to prepare for schooling costs each fall.

Certificates of Deposit Rates

As we've mentioned, certificates of deposit rates tend to be more competitive than what you can earn from a traditional savings account. Therefore, they are highly valuable savings tools that can produce greater returns for account holders, all without opening them up to a higher level of risk, exposure, or volatility like investing in the stock market.


Lastly, CDs are flexible, meaning they are available in a number of terms so investors can find the option that’s right for them and their financial needs.

When it comes to back-to-school spending, the flexibility of our Scholastic certificate of deposit is particularly helpful. Investors can ensure that the money is ready and available for when they'll need to use it in the fall. So, if parents want to prepare now for a few years down the road or for the coming school year, they can choose a Scholastic CD for them.

Given how compound interest works, the longer the maturity date, the greater the return the CD will be able to yield. Parents will need to keep this in mind when planning for back-to-school spending.

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Why Waldo State Bank's Scholastic CDs are Best for Back-to-School Spending

As we've discussed, certificates of deposit can be great investment tools that help people securely save and grow their wealth. It can be highly beneficial during the back-to-school season. However, not all financial institutions offer the same perks with their CD products.

At Waldo State Bank, we are proud of our community roots and are committed to providing only the best banking products for our customers. We know that life happens, which is why our certificates of deposit are flexible and work to fit your needs. When you have a Scholastic CD with Waldo State Bank, you can add to the account at any time–not just when you open it. Plus, anyone can deposit the funds, not just the account holder.

Additionally, for our Scholastic CDs, there are no penalties or fees with withdrawals of $100 or more, making it a great tool for paying back-to-school costs. This is not a benefit you'll find at other financial institutions, so Waldo State Bank's Scholastic CDs are unmatched when saving up for back-to-school spending.

Other Certificates of Deposits Opportunities

Looking for other great CD products? Waldo State Bank also offers add-on CDs, personal CDs, and IRA CDs. Make sure to visit our website to learn more about our current specials and competitive rates!

At this time, we're offering an exceptional opportunity for those opening up a certificate of deposit with us by August 31. We’re currently offering a 13 and 25-month rate special!

See what compound interest can do for you and open a CD with Waldo State Bank today!

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