All You Need to Know about Share Certificates

No one wants to play around with their savings. You work hard for your money, and if you’ve built up a sizable nest egg, you’ll want to park it somewhere safe where it will have the best chance at growth.

If you’re looking for a place to keep your savings, a Share Certificate at OE Federal Credit Union can be a fantastic option. Here’s why this savings product might be the perfect choice for you:

What is a share certificate?

A Share Certificate is a federally insured savings account with a fixed dividend rate (the money you earn annually from your account) during a fixed date of maturity.  If you’re wondering what a maturity date is, this is the end date of the 3 month to 5 year term you would initially pick. The dividend rates of these accounts are usually higher than those on savings accounts, but you’ll have more limited access to the funds. Most certificates will not allow you to add any money to the certificate after you’ve made your initial deposit and you won’t be able to withdraw your funds before the maturity date without paying a penalty.

Terms and conditions of certificates:

You’ll need to meet some basic requirements before you can open a certificate, including a minimum opening balance and a commitment to keep your money in the account for a set amount of time. The specifications of these requirements vary with each institution. In general, though, the more money you invest in a certificate and the longer its maturity term, the higher the dividend rate on the certificate.

Is a share certificate for everyone?

A Share Certificate is best for individuals who have a separate emergency fund to cover those surprise expenses. Before you open a certificate, make sure you won’t need to access the funds before the maturity date.

What are the advantages of a share certificate?

• Low risk. With each OE Federal Credit Union certificate insured by the NCUA up to $250,000, your money is completely secure.
• Higher dividend rates. Certificates offer all the security of savings accounts with higher yields.
• Locked-in rates. The APY on a certificate is set when you open the account and is locked in until its maturity date.

If you’re ready to open your Share Certificate or want to learn more, click here or give us a call at 800.877.4444 today. For help with getting started on saving for today and tomorrow, give our friends at BALANCE a call for free financial coaching at 888.456.2227 or visit oefederal.balancepro.org.