In most community associations and homeowners associations (HOAs), property managers and board members oversee the reserve funds that support long-term maintenance and community needs. Association certificates of deposit (CDs) are one way to strengthen those reserves through predictable, fixed returns. The guide below walks through several ways community associations can maximize CD rates and strengthen their overall CD strategy. 

How can community associations and HOAs benefit from CDs?

Before exploring specific strategies, it helps to understand how CDs support an association’s broader financial goals. CDs help grow a community association’s reserve fund which in turn can help relieve homeowners of the financial burden of special assessments. As a low-risk deposit account, CDs keep funds safe while earning predictable returns over a set period. Because CDs offer a fixed interest rate, community associations can accurately budget and plan for future improvements based on the interest earned upon maturation.

To choose the right option for your community association, it’s important to compare CDs based on term length, type, interest rate, and additional features to determine the best fit for your community association. CD balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account.

5 strategies to maximize HOA CD rates in 2026

CDs can play an important role in helping HOAs make the most of their reserve funds. The following strategies offer practical ways to pursue competitive CD rates while keeping your community’s long-term financial needs in mind. Implement the strategies as your HOA board members see fit. 

1. Integrate CDs into the HOA’s financial goals

HOAs should ensure the funds they’ll invest in a CD aren’t vital to upcoming projects, anticipated or otherwise. One way to figure this out is to do a reserve fund study, where the treasurer/board members evaluate what improvements the HOA will need to cover within the next several years to determine how much of the reserve fund is available for investing. HOA board members can make a more informed decision with this information.

2. Compare CD terms and features to find the best fit

CD features including term length, minimum balance requirements, and the fixed interest rate all play a role in determining potential returns. By comparing these details, you can choose CDs that align with your association’s reserve timeline.

3. Create and maintain a CD ladder

Using a combination of short-term and long-term CDs can help free up funds at different intervals. A CD ladder divides reserve funds across multiple CDs with staggered maturity dates. This strategy helps associations maximize interest earnings while ensuring that a portion of funds becomes available at regular intervals. Over time, a well-maintained ladder can support both liquidity and long-term reserve planning.

4. Review CD maturities and renew strategically

When a CD reaches its maturity date, HOA board members have an opportunity to reassess their current strategy. Comparing current rates at renewal time helps determine whether to roll the CD into a new term or adjust the length.

5. Monitor market trends and adjust accordingly

Interest rates shift throughout the year, and staying aware of broader market trends can help boards make informed decisions. For example, if interest rates are expected to go down, then locking in a CD at a higher rate now maximizes your earnings. Monitoring the rate environment ensures the HOA’s CD strategy aligns with changing economic conditions. 

How to open an HOA CD

Before opening a CD account, community associations should confirm that doing so is permitted under their bylaws or governing documents. The bylaws often outline who on the board has the authority to open and manage financial accounts. Next, you’ll want to gather the information necessary to open the CD, including any documents authorizing the board member’s eligibility to open the account. 

Working with a professional banker can help simplify the process of opening a CD account. ensures you have the guidance necessary to set up the account correctly. A knowledgeable banking partner can help you determine how to fund the CD, choose an appropriate term, and integrate the account into your broader financial strategy. HOA board members should also communicate these decisions to homeowners to foster transparency and trust within the community. 

CDs vs. savings accounts vs. money market accounts

Certificates of deposit aren’t the only way community associations and HOAs can manage and grow their reserve funds. Savings and money market accounts can also help HOAs optimize their reserve funds. Like CDs, these accounts have advantages and disadvantages. 

CDs vs. savings accounts

With a traditional savings account, you can access funds any time you like, but you’re typically limited to six penalty-free withdrawals per statement period. Savings accounts’ interest rates are normally much lower than CD interest rates and fluctuate with the financial market. While savings accounts allow ongoing contributions, CDs generally do not accept additional deposits after opening unless specifically structured to do so.

CDs vs. money market accounts

Money market accounts are similar to traditional savings accounts in that you’re limited to six withdrawals per statement period before you’re subject to a penalty fee. Like savings accounts and CDs, your funds earn interest, but fixed-rate CDs tend to offer better rates. Money market accounts, similar to savings accounts, offer variable rates. 

Rely on the experts to maximize your HOA CD rates

A knowledgeable banking partner can help board members and property managers navigate their CD options and build a strategy that supports long-term financial stability. At Popular Association Banking, we offer a range of HOA banking services designed to help communities maximize the potential of their reserve funds. Connect with a Relationship Manager today to explore current CD rates and determine what strategy would work best for your association.