Is a Share Certificate Right for You?

Is a Share Certificate Right For You?

If you find yourself with some extra savings and want to earn higher dividends than you would in a regular account, there are several options to consider. You might be wondering: is a share certificate right for you?

A share certificate is a lot like a Certificate of Deposit, or CD. It is issued by a credit union rather than a bank. Like a CD, you cannot withdraw your funds without penalty. However, you’ll likely earn a greater interest rate than you would with a CD. You get to decide the amount you deposit and the length of time your share certificate lasts, so if you’re looking for greater flexibility and control this may be the way to go. This takes out the worry of all the unknown factors of other similar accounts.

As long as the funds are left alone, you should be able to calculate your exact dividends of the investment. It’s a pretty sure thing! Credit unions also make it super-easy for you by letting you determine the time frame of the certificate–it could be as little as 30 days. While most market accounts require a larger sum, you can initially deposit as little as $1,000 into a share certificate. This makes it a great option for someone looking to invest a smaller amount of savings. You can still earn a high amount of interest if you set up the account correctly. Your credit union can help you stay on track.

There are many credit unions that will offer a one-time withdrawal or other add-on options. If you find yourself in a pinch and need money fast it can be simple to obtain. The flexibility of a share certificate can improve your saving potential and provide more opportunities for you and your money. If this all sounds good to you, consult with your credit union to determine if a share certificate is right for you!

If you’re looking to maximize dividends on your hard-earned savings, you need look no further than Y-12 FCU for your investment needs! Our friendly team of financial experts is ready to guide you through all their incredible options to help you flourish. You never know when you’ll find yourself in need of some extra cash and with our Share Certificate, you can earn what you need in a timeframe that works for you! Click here to learn more about opening a Share Certificate with Y-12 Federal Credit Union in Knoxville.