All You Need to Know About Certificates

As an institution devoted to your financial wellness, Ideal CU offers several secure options for your savings. One of our most popular savings products is our certificates, commonly known as CDs. These 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 a good 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 in a certificate. That means you will not be able to withdraw your funds before the maturity date without paying a penalty.

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 put in a certificate, the higher rate of interest it will earn. Second, you’ll need to commit to a term length. At Ideal CU, we offer our members certificates that can be open for just 91 days or as long as 60 months. We also offer CD specials. Click here for more information about our current rates and terms.

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 Ideal CU certificate is federally insured by the by the National Credit Union Administration up to $250,000.
2. Higher dividend rates. Certificates offer higher yields than most savings accounts.
3. Locked-in rates. There’s no stressing over fluctuating 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 a good choice for you, stop by or call Ideal CU today to learn more.