You’ve been putting money away each month and your savings account has started to grow. First, give yourself a pat on the back – good for you for saving. Secondly, we would encourage you to think about where you can put that money to make it grow for you.
If you’re looking to increase your long term savings, a Certificate Account could be the solution for you. A Certificate provides a low-risk way to invest funds that you may not need immediately. It is the perfect way to make your money work for you by earning top dollar. The longer the term of the Certificate, the higher the rate of return.
What’s a Certificate Account?
A Certificate Account is a type of investment that offers a higher annual percentage yield than a regular savings account. Most Certificate Accounts are insured by either the FDIC or NCUA up to $250,000 so you can count on the stated rate of return. This gives you added peace of mind.
How does a Certificate Account work?
When you open a Certificate account, you are investing a fixed amount of money for a fixed period of time. The time period varies with each financial institution but can range from 6 months up to 7 years. In return for locking your money, the issuing credit union agrees to pay you a set amount of interest when you redeem the certificate, at the end of the term. Typically, the longer you invest, the higher the rate of return.
What if I need my money early?
A Certificate Account usually requires you to keep the money in the account until the end of its term or maturity. If you need your money before it matures, you will probably pay an early withdrawal penalty. To avoid any penalties, think about your savings goals and when you will need access to the funds. These penalties are designed to help you stay motivated to leave your balance alone and let it grow.
What should I look for when selecting a Certificate Account?
- Know the term and when it matures.
- Know what the interest rate will be for the amount of money you are investing.
- Understand how you will be paid. Will the interest be paid monthly or quarterly and will it be paid to you or rolled back into your Certificate Account?
- Watch for special promotional rates and withdrawal penalties.
- Know what will happen when your Certificate matures. Will it renew automatically, and if so, how much time do you have to make changes?
A Members Trust Certificate
Terms available from 182 days up to 7 years
- $1,000 for a Regular Certificate
- $25,000 for a Mini-Jumbo Certificate
- $90,000 or more for a Jumbo Certificate Account
Rates are changing so don’t miss this opportunity to lock in a great rate on a Certificate Account. What Rate Can I Get?
If you’re looking for a secure way to grow your money, a Certificate could be right for you. Drop by a branch or give us a call to discuss your investment options.