All You Need to Know About Share Certificates

What is a share certificate?

A share certificate is an insured savings account, typically with a fixed dividend rate and term. 

What are the advantages of share certificates? 

• Low risk. With each certificate, which is insured by the NCUA, your money is secured up to $250,000. 
• Higher dividend rates. Certificates offer all the security of savings accounts with higher yields. 
• Locked-in rates. The APY* on a certificate is locked in until its maturity date (term).

What certificate term should I choose? 

When you open your certificate, you’ll be given a choice for the maturity term, typically from 6 to 72 months. In general, certificates with longer maturity terms will earn a higher rate, but rate should not be your only point of consideration. 

Choose a shorter term if you anticipate needing to access the money soon.

Choose a longer term if you won’t need to access the funds anytime soon.

In addition to rate and term, also factor the impact of your certificate(s) on your overall savings plan.

Where can I see my options and calculate earnings on a share certificate?

See Everwise’s current share certificate specials here and use our handy online calculator to see how much you could earn for a specific rate and term.

Learn about more about certificates and additional savings account options by visiting our FREE Personal Finance Program.

Disclaimer

*Annual Percentage Yield (APY). All information presented on this page is for educational purposes only and doesn’t constitute tax, legal, or accounting advice. It is to be considered as general information, not recommendations. Please consult with an attorney or tax professional for guidance.