Breaking Down Share Certificates

30 May 2017, Comments: Comments Off on Breaking Down Share Certificates

What is a Share Certificate and Why Should I Get One?

You’ve probably heard the term share certificates, but you may not know what they are, or why they can be such a great way to save your money. A Share Certificate (also referred to as a CD, or certificate of deposit) is an easy, risk-free way to save money and earn a higher rate of interest on your savings.

Here’s a quick breakdown of share certificates.

What are they?

Share certificates are deposit accounts with a set maturity date that accrue money at a fixed interest rate. Share certificate accounts differ from traditional savings accounts because of their set terms and higher interest rates.

Are there any risk with share certificates?

If you withdraw your money before your term matures, you will face an early withdrawal penalty. While this does encourage you to save, your funds are still available to you if you find yourself needing the cash.

How do they work?

Share certificate accounts work similarly to a savings account, but they have a set term from the start. This can be a minimum of a few months up to several years. The longer the term, the higher the rate; so, if you can commit to a longer term, you will earn more for your money. There is a minimum balance required based on your selected term. Many share certificates have a fixed rate, so you know up front exactly how much you will receive upon maturity. Knowing up front what your total earnings will be helps you better plan for the future. All share certificate accounts are insured by the NCUA for the maximum amount allowed.

We have recently raised our share certificate rates!

If you are interested in opening a Share Certificate Account, stop by any of our branches, give us a call, or click here to learn more!


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