Dividend earnings may be reinvested into the share certificate to enhance your total earnings. Or you may choose to have dividends deposited into a savings account or mailed directly to you.
Unless specific arrangements are made with a member service representative, certificates will automatically renew at maturity. A statement will be sent out approximately 14 days prior to maturity and there will be a 7-day grace period. This provides convenience for members, and permits members nearly 30 days to change the terms or conditions of the certificate without penalty.
A great way to build liquidity into certificates — and to make the most of rate changes — is to ladder your share certificates.
Laddering simply means dividing your money among several certificates, each with an increasingly longer term, instead of putting all your money into one certificate. This way, part of your investment becomes available periodically rather than locking the entire amount for the longest term.
In addition to making funds available if you need them, this gives the opportunity to take advantage of rates that are increasing since you can reinvest the share certificate that matures at the current rate.