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All You Need to Know About Share Certificates
All You Need to Know About Share Certificates10/1/2019

two women looking at paperwork with open laptop in their homeShare Certificate accounts offer the best of both worlds when it comes to your savings. You’ll be giving your money a great chance at growth without subjecting it to the risks of investing in the stock market.

Let’s take a closer look at how certificates work and why they might be the perfect choice for you.

What is a certificate?

A certificate is an insured savings account with a fixed dividend rate and a fixed maturity date. Rates tend to be higher than those of savings accounts. Also, unlike a savings account, your money will be less accessible than when in a certificate. That means you will not be able to withdraw your funds before the maturity date without paying a penalty.

If you need more flexibility, check out our Flex Certificates.

Terms and conditions of certificates

There are some nominal requirements that must be met before you can open a certificate.

First, you’ll need a minimum deposit amount. This amount will vary widely from one financial institution to the next. In general, the more money you park in a certificate, the higher rate of interest it will earn. At MCCU, you can open a certificate with as little as $1,000.

Second, you’ll need to commit to a term length. Here at MCCU, we offer our members certificates that can be open for just 3 months or as long as 5 years.

Plus, you can open any MCCU Certificate account as an IRA retirement account.

Is a certificate for everyone?

It’s important to note that your money will be tied up in the certificate, and you will not be able to access it without paying a penalty. A certificate works best for people who have a robust emergency fund and do not anticipate needing to access the funds in their certificate until its maturity date.

Why keep your money in a certificate?

Here are some of the most popular reasons people choose to open a certificate:

  1. No risk. While nearly every investment carries some sort of risk, your money is always safe in a certificate. Each MCCU certificate is insured by the by the National Credit Union Administration (NCUA) up to at least $250,000.

  2. Higher dividend rates. Certificates offer higher yields than most savings accounts.

  3. Locked-in rates. There’s no stressing over fluctuating national rates with a certificate. The APY is set when you open the account and is locked in until its maturity date.

If a certificate sounds like the choice for you, visit us or call us for more information and open your account today!



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