All You Need to Know About Savings Certificates

Published January 2, 2020

What is a certificate?
 
A certificate is an insured savings account with a fixed dividend rate and a fixed maturity date. Rates tend to be higher than those of savings accounts. Also, unlike a savings account, your money will be less accessible than when in a certificate. That means you will not be able to withdraw your funds before the maturity date without paying a penalty.
 
Terms and conditions of certificates
 
There are some nominal requirements that must be met before you can open a certificate.
 
At Maps, you'll need a minimum $1,000 deposit. This amount will vary widely from one financial institution to the next. However, the more money you deposit in a certificate, the higher rate of interest it will earn. 
 
Second, you'll need to commit to a term length. Here at Maps we offer our members certificates that can be open for just 3-months or as long as 60-month. To hear more about our terms and rates, speak to a Maps representative today.
 
Is a certificate for everyone?
 
It's important to note that your money will be tied up in the certificate, and you will not be able to access it without paying a penalty. A certificate works best for people who have a robust emergency fund and do not anticipate needing to access the funds in their certificate until its maturity date.
 
Why keep your money in a certificate?

  1. No risk. While nearly every investment carries some sort of risk, your money is always safe in a certificate. Each Maps certificate is insured by the by the National Credit Union Administration (NCUA) up to $250,000.

  2. Higher dividend rates. Certificates offer higher yields than most savings accounts.

  3. Locked-in rates. There's no stressing over fluctuating national rates with a certificate. The APY is set when you open the account and is locked in until its maturity date.

  4. Maps’ certificates can also be designated as an IRA account which has great tax benefits and it’s never too early to plan for retirement!

If a certificate sounds like the choice for you, stop by Maps or check out our rates online.