Looking for a low-risk investment with a high rate of return? A Certificate Account is a great savings tool that can give you the ability to grow your savings with peace of mind.
Certificate Accounts are a type of savings account similar to a certificate of deposit (CD), but it is issued by a credit union, instead of a bank. These certificates are designed to pay a set interest rate on your initial deposit for a fixed amount of time to help your funds grow faster.
With terms as short as 6 months that go up to 7 years, and deposit amounts as low as $1,000 you have a wide range of low-risk investment options. However, you can’t make further deposits into the account once your certificate has been opened.
Unlike other investment options, you don’t have to worry about fluctuating interest rates with a certificate because your rate is locked in for the length of the term.
Additionally, your funds are safe and sound since Certificate Accounts are federally insured up to $250,000 by the National Credit Union Administration (NCUA).
It’s important to know that you will have to pay a penalty if the money in your certificate is withdrawn before the end of its maturity date. Having a rainy day fund set aside will help you avoid needing to access the cash in your certificate if an emergency comes up.
Pro Tip:
When your certificate matures, reinvest your money and open a new Certificate Account with a longer-term and higher rate. This will create a revolving door of savings that will deepen your pockets.
If you’re holding onto savings for a major event, a nest egg, or a future vacation, you may want to store your money somewhere safe and secure, knowing that you will have your money back plus the interest earned during the term.
Reach your goals faster and easier with a high rate Certificate Account from AFFCU.
