Share Certificates
When you want a guaranteed return on your money, put your savings into high-yield Share Certificates. At Dade County Federal Credit Union, we make investing affordable. We offer flexible terms from 3 months up to 5 years with low minimum deposits. Stop by a branch today to start saving! View our current savings rates.
What’s The Difference Between a Share Certificate and a Certificate of Deposit (CD)?
Share Certificates and Certificates of Deposit (CDs) are similar high-yield savings options, but they are typically offered by different types of financial institutions.
Share Certificates:
- Offered by credit unions.
- Fixed-term savings accounts (e.g., 6 months, 1 year, 5 years).
- Higher interest rates compared to regular savings or checking accounts.
- Early withdrawal may result in penalties.
- Insured by the National Credit Union Administration (NCUA).
Certificates of Deposit (CDs):
- Typically offered by banks (including traditional banks, online banks, and sometimes credit unions).
- Fixed-term savings accounts with higher interest rates.
- Early withdrawal can lead to penalties.
- Typically insured by the Federal Deposit Insurance Corporation (FDIC) for banks or NCUA for credit unions.
What Are the Key Benefits of Share Certificates?
Higher Interest Rates:
Share certificates typically offer higher interest rates compared to regular savings or checking accounts. This means your money can grow faster over the certificate's fixed term.
Safety and Security:
Share certificates from credit unions are generally insured by the National Credit Union Administration (NCUA) for up to a certain amount (usually $250,000 per account holder). This provides a level of safety and security for your deposits.
Fixed Terms:
Share certificates have fixed terms, which means you lock in the interest rate for a specific period. This helps you plan and budget your savings more effectively.
Discourages Impulse Spending:
The penalty for early withdrawal from a share certificate can discourage impulsive spending. It encourages you to keep your savings intact until the maturity date.
Diversification:
By having a share certificate, you can diversify your savings and investments, spreading your risk across different financial products.
Access to Credit Union Membership:
Opening a share certificate account often requires membership in a credit union. Becoming a credit union member can provide access to a range of financial products and services tailored to your needs.
Flexible Terms:
Share certificates come with various term options, allowing you to choose a duration that fits your financial goals, whether short-term or long-term.
Competitive Rates:
Credit unions may offer competitive rates on share certificates, making them an attractive option for earning more on your savings.
Peace of Mind:
Knowing that your money is growing steadily at a higher interest rate than a standard savings account can provide peace of mind and financial security.