Did you know that your savings portfolio should be diversified just like your investments? Financial experts recommend giving your savings as much chance as growth as possible. Let’s look at an especially great choice for diversifying your savings: a share certificate.
What is a Term Share Certificate?
A share certificate is an insured savings account with a fixed dividend rate and a fixed date of maturity as well. The funds in these accounts will grow at a dividend rate that is usually higher than those on typical share savings accounts, and some money market accounts.
How is a share certificate different from a savings account?
There are several differences between a share certificate and a savings account, but the main one is the accessibility. Whereas a savings account has minimal restrictions on in-branch withdrawals, the funds in a share certificate can’t be withdrawn without penalty until the maturity date.
Terms and conditions of certificates
As a member of JM Associates Federal Credit Union, you can open a certificate today. However, there are some basic requirements. These include having a minimum opening balance and committing to keeping your money in the account for a set amount of time. At JM Associates Federal Credit Union, you can open a certificate with as little as $1,000.
Certificate term lengths also vary among financial institutions, with most offering a choice of certificate terms ranging from three months to five years. At JM Associates Federal Credit Union, we offer our members certificates that can be opened for just 6 months and up to five years. Our dividend rates are on the rise.
Is a savings certificate for everyone?
While keeping your savings in a certificate can be an excellent way to diversify your savings, it may not for everyone. If a certificate sounds like the perfect choice for you, stop by JM Associates Federal Credit Union today to learn more. We’re committed to giving your money its best chance at growth.
