Share certificates are a type of credit union savings account very similar to certificates of deposit, or CDs, offered at banks.
In simplest terms, you deposit an amount of money into a share certificate, commit to a time period (term) where that money will remain in the account, and you earn dividends (interest) based on the length of your term. See the chart below for available terms and their current rates. Rates are locked in at the time of account opening and through your term's fixed period.
Term of Investment | Minimum Balance To Open | Minimum Balance To Earn Interest (Dividends) | Compounding Frequency | Interest (Dividend) Rate | Annual Percentage Yield |
---|---|---|---|---|---|
4 Months | $500 | $500 | At Maturity | 3.000% | 3.034% |
6 Months | $500 | $500 | Monthly | 3.250% | 3.294% |
9 Months | $500 | $500 | Monthly | 3.250% | 3.297% |
12 Months | $500 | $500 | Monthly | 3.500% | 3.557% |
18 Months | $500 | $500 | Monthly | 3.750% | 3.817% |
24 Months | $500 | $500 | Monthly | 3.750% | 3.818% |
30 Months | $500 | $500 | Monthly | 3.500% | 3.560% |
36 Months | $500 | $500 | Monthly | 3.500% | 3.560% |
48 Months | $500 | $500 | Monthly | 3.500% | 3.561% |
60 Months | $500 | $500 | Monthly | 3.500% | 3.561% |
Rates Effective |
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Why a certificate, not just a standard share account?
We are able to offer better dividends on a certificate then our standard Share accounts, as you are pledging to keep the money deposited for a set term. If you need to withdraw your shares during the term (before it “matures”), you may be subject to a penalty for breaking your term. However, if you hang in there and it matures, you can either renew it for the same term, roll it into another certificate for a different term, withdraw your funds, or transfer it to another account (like a Share, Deposit, or Money Market). Your funds are insured up to $250,000 by the NCUA, so they are safe and secure as any other account.