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Certificates, Money Management

Give Your Savings a Boost: Share Certificates

What Is a Share Certificate?

A Share Certificate is a type of savings account at a credit union—similar to a Certificate of Deposit, or CD, at a bank—that lives for a specified amount of time, and pays dividends at a rate that is usually higher than a regular savings account. To reap the full benefits of the certificate, you shouldn’t remove your money from the account early, otherwise you may be charged a penalty fee or forfeit the dividends.

What Are the Benefits of a Certificate?

Certificates offer a fixed rate of return that gets locked in when you open the account. And you’re in control over how long you want to put your money away, ranging in months to years. Often, the longer the term, the higher the yield. You can start your certificate with a low opening deposit and your money is federally insured by the NCUA.

Differences Between a Share Certificate and a Regular Savings Account

Unlike a regular savings account, you can’t deposit more money or take out any money during the term of a certificate. Because a savings account provides more flexibility on when you can move your money, the dividends or interest you earn is usually a much smaller percentage, and the rate is subject to change.

Goals and Uses of a Certificate:

  • Discourages you from dipping into your savings
  • Helps you save for short- and long-term purchases
  • Earns you extra money on savings you’ve already grown

Interested in opening a certificate? Orange County’s Credit Union has multiple options to help meet your needs. If you need assistance with a financial game plan, call us today or visit one of our 10 convenient branch locations. You can also request an appointment.


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