Business Certificate Of Deposit (CD) in Old National Bank

Secure your company’s excess cash with a Business Certificate of Deposit (CD) from Old National Bank — a disciplined, low-risk solution that combines predictable returns with the stability of a time-deposit instrument. Designed specifically for businesses, nonprofit organizations, and public entities, the Business CD provides a clear, contractually defined interest stream and maturity date so you can plan cash flow, preserve principal, and earn meaningful yield while funds are set aside for future obligations.

Why choose a Business CD?

A Business CD is ideal for organizations that need a conservative place to park funds for a specified period without exposure to market volatility. Compared with checking and many savings accounts, a CD typically delivers higher interest rates in exchange for committing funds for a fixed term. Key advantages include:

• Predictable, fixed return: Interest rates are agreed upon at issuance and remain fixed for the term, giving precise earnings expectations.
• Capital preservation: Because principal is held intact through the term, CDs are a secure way to protect surplus funds.
• Term flexibility: Choose from a range of maturities to match project timelines, payroll cycles, tax liabilities, or future investments.
• Simple administration: Streamlined documentation and reporting that align with corporate accounting practices and audit requirements.

Business-focused features

Old National Bank structures its Business CDs to support the realities of running an organization. Features that matter to treasurers, CFOs, and finance committees include:

• Varied term lengths: Short-term and long-term options give you the ability to match maturities with anticipated liquidity needs.
• Competitive rates: Rate environments change, and Old National Bank aims to provide rates that are attractive for business depositors relative to comparable products.
• Interest payment flexibility: Choose interest credited at maturity, paid periodically, or credited to a linked commercial deposit account to support ongoing cash requirements.
• Automatic renewal: At maturity you can elect automatic renewal for the same term, or have funds returned to a business checking account for redeployment.
• Multiple ownership structures: Available to corporations, LLCs, partnerships, sole proprietorships, nonprofit entities, and government units, with institutional account documentation for robust compliance.

How a Business CD fits into corporate cash management

A well-constructed cash management strategy balances liquidity, yield, and risk. Business CDs are a core tool for:

• Short-to-medium-term reserves: Set aside funds for capital purchases, tax payments, or payroll contingencies while earning a return.
• Laddering strategies: Stagger multiple CDs with varying maturities to create a steady stream of reinvestment opportunities and improved liquidity without sacrificing yield.
• Capital preservation: Use CDs to hold funds designated for low-risk objectives such as grant disbursements, escrowed amounts, or restricted reserves.

Interest calculation and taxation

Interest on Business CDs accrues according to the terms set at issuance. Depending on your selection, interest may compound periodically or be paid at maturity. For accurate financial reporting, interest income should be recognized in line with generally accepted accounting principles applicable to your entity. Businesses are responsible for the appropriate tax reporting of interest income; consult your tax advisor or accounting team about treatment in your jurisdiction and how interest is reflected on corporate tax returns.

Access and restrictions

A Certificate of Deposit is a time-bound instrument: funds are committed to the agreed term and early withdrawals are generally subject to penalties. These penalties may be calculated as a portion of accrued interest or, in some cases, reduction to principal for early surrender. Before selecting a term, consider anticipated cash needs to minimize the likelihood of early withdrawal. For organizations that need occasional access, Old National Bank offers a range of liquid deposit options and commercial sweep solutions that can be paired with CDs for optimized liquidity.

Opening a Business CD

Opening a Business CD at Old National Bank is designed to be straightforward while meeting regulatory and compliance requirements for business accounts. Typical steps include:

1. Determine the appropriate term and interest payment option based on your cash flow calendar.
2. Prepare organizational documentation required to open a business account, including articles of incorporation, operating agreements, partnership agreements, or nonprofit registration as applicable, along with taxpayer identification details.
3. Designate authorized signers and establish internal controls for account management and transaction approvals.
4. Fund the CD with the agreed minimum deposit at the branch or via an approved funding mechanism and obtain confirmation of terms in writing for recordkeeping.

Use cases and real-world scenarios

Organizations across industries use Business CDs to meet strategic objectives:

• Construction firms: Park retention or contingency funds for the expected duration of a project.
• Nonprofits: Preserve grant funds or donor-restricted gifts until they are needed for programmatic spending.
• Professional services firms: Allocate fiscal-year-end tax reserves or planned capital expenditures.
• Municipal and public entities: Manage short-term reserves and ensure transparent, auditable holdings for public funds.

Documentation and reporting

Old National Bank provides formal documentation at account opening and upon issuance of the CD, including term confirmation and annual tax reporting information where applicable. Statements and transaction histories can be tailored to integrate with corporate accounting systems and audit practices, simplifying reconciliation and compliance.

Risk considerations

While a Business CD is a low-risk instrument, it is not without considerations. Early withdrawal penalties reduce liquidity and can impact total returns if funds are accessed before maturity. Interest rate environments can shift; locking into a longer term might mean foregoing future rate increases. Conversely, shorter terms expose balances to reinvestment risk. Evaluate your organization’s liquidity needs, risk tolerance, and interest rate outlook before selecting a term.

Getting started

If your organization seeks a secure, clearly defined deposit vehicle that balances predictable returns with disciplined cash stewardship, a Business Certificate of Deposit at Old National Bank is a prudent choice. Work with your financial team to match terms to operational needs and incorporate CDs into a broader treasury strategy that optimizes yield, preserves capital, and supports the financial stability of your enterprise.

Choose a solution that complements your cash management goals and provides the clarity and structure your organization needs to plan with confidence.

Address Bank: Chicago, Illinois Evansville, Indiana, U.S.
Bank: Old National Bank
Headquarters: Evansville, Indiana
Products: Deposit Accounts
Type: Business Certificate of Deposit (CD)