Would you like to grow your money? If you have some extra cash sitting in your savings account, it may be time to open a certificate.

Would you like to grow your money? If you have some extra cash sitting in your savings account, it may be time to open a certificate. A certificate is a safe and easy way to grow your savings over time. A share certificate, referred to as a certificate of deposit (CD) at banks, is a type of savings account that has higher dividend rates compared to normal savings accounts.  

Looking for a Smart Way to Save? Open a Certificate!

January 30, 2017

Make your money grow by putting it into a Certificate!

Would you like to grow your money? If you have some extra cash sitting in your savings account, it may be time to open a certificate. A certificate is a safe and easy way to grow your savings over time.

A share certificate, referred to as a certificate of deposit (CD) at banks, is a type of savings account that has higher dividend rates compared to regular savings accounts. You lock in a certain amount of money for a pre-determined time frame, called a term, and receive dividend payments each month or quarter, depending on the certificate plan.

Learn more: CD and Share Certificate Terms Defined

One thing to keep in mind before opening a certificate is that you have limited access to your money. To get the full benefits of the account, you must leave all of the money in the account for the set term. If you take money out, you will likely be hit with fees or penalties. It’s best to know how much money you can spare and put that into the certificate to safeguard against pulling money out of the account. Make sure to leave some money in your regular savings for emergencies and unexpected expenses.

Share certificates have a variety of terms, usually ranging from six months to five years. The dividends increase with the length of the term. If you’re worried about locking up your money for years without any access, a laddering strategy can help you receive the benefits of longer terms while still having some access to your cash.

Investing in a share certificate is smart and safe because there is little risk. Once you lock your money into a certificate, you are guaranteed the dividend rate for the length of the term. You will not lose money, and some institutions allow you to upgrade your dividend rate if it goes higher during your term.

Wondering how much you could earn with a share certificate? Use this calculator to see. You may be surprised by how easy it is to grow your money with a share certificate.

Ready to open a share certificate? Open it at any branch, or through Online Banking! Simply hover over Additional Services in the top blue bar, then click Open an Account, followed by the Certificate Account tab. Click the Select button next to the term you want, click the Next button at the bottom of the page, and choose the account you want to transfer the funds from. Read through the terms and conditions on the next page, check the boxes, click next and you’re ready to go!

Have You Considered a Laddering Strategy?

Reap the higher dividends of certificates while maintaining liquidity for easy access to your cash.  Learn how Certificate Laddering works.

Get the Guide

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Equal Housing LenderThis credit union is federally insured by the National Credit Union Administration.

Redstone is an Equal Credit Opportunity Lender.

This content is provided for informational and educational purposes only and considered accurate as of the date posted. Views and opinions expressed in comments do not constitute an official endorsement by Redstone Federal Credit Union® or its affiliates. Redstone encourages you to seek professional advice for your personal situation before making any financial decision and is happy to assist you at any of our branch locations.

Must be RFCU® member to obtain or use any product or service. Must open a share savings account to join RFCU. A $5 minimum balance is required to open a share savings account and must be maintained in the share savings account at all times. Age and other restrictions may apply.

Must be RFCU® member to obtain a share certificate. The minimum balance required to open and maintain a share certificate and to earn dividends is $1,000 for regular certificates and $100,000 for jumbo certificates. Fees and other restrictions may apply. Fees and other conditions could reduce earnings on share certificate account. A penalty will be imposed for early withdrawal of principal prior to maturity. Non-compounding share certificates will have dividends credited to the primary share account. Dividends cannot remain on a non-compounding share certificate. The payout of dividends is mandatory. Must have online banking user name and PIN/password to access online banking in order to open a Share Certificate online.

Member’s Choice Certificates: Member’s Choice Certificates are available for a limited time only. Rates, terms, and conditions are subject to change at any time. Minimum balance required to open and maintain the Member’s Choice Certificate account and to earn dividends is $1000. Option to open multiple Member's Choice Certificates is available. Member’s Choice Certificates are not available as jumbo certificates.

After 90 days from Member’s Choice Certificate opening date, members may request a change to current dividend rate applicable to that certificate term. Future rate changes may be requested every 365 days after the last rate change to certificate. RFCU cannot guarantee future increases of certificate rates. Rate change request must be initiated by the member, either in writing or by telephone call.