Making money takes effort, but with a share certificate (also called a certificate of deposit or CD) all you need is a bit of patience. Whether it's three months or five years, share certificates offer fixed returns throughout your chosen term. Simply choose your term, then lock in your rate. It's a great way to meet short-term financial goals — just sit back and watch your savings grow!

Summary
  • Set aside for future savings goals
  • Provides more guarantee than other risky investments
  • Greater earnings than share accounts
  • Competitive, fixed rate for length of term
  • A wide range of terms available (from 3 months to 5 years)
  • Receive higher rates by selecting a longer term
  • No setup or maintenance fees
  • Flexible options at maturity
  • Can ladder share certificates to increase liquidity
  • Early withdrawals subject to penalty
  • $500 minimum deposit to open
  • Federally insured by NCUA up to $250,000
Dividends

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.

Maturity

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.

Laddering

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.