Certificates
Much like a Certificate of Deposit, this account can help you earn a higher rate of return on your money. Stop by a branch to open yours today.
IRA Certificate
Combine the steady interest of a Share certificate with the tax advantages of an Individual Retirement Account (IRA).
- $1500 minimum balance.
- Terms of 3, 6, 9, 12, 18, 24, 30, 36, 48, or 60 months.
Certificate Rates
Share Certificates
| # Months / Years | # of Days | Div Rate | APY |
|---|---|---|---|
| 3 Months | 91-181 | 4.04% | 4.12% |
| 6 Months | 182-272 | 4.13% | 4.21% |
| 9 Months | 273-364 | 4.14% | 4.22% |
| 12 Months or 1 Year | 365-546 | 4.14% | 4.22% |
| 18 Months | 547-729 | 3.92% | 3.99% |
| 24 Months or 2 Years | 730-911 | 3.89% | 3.96% |
| 30 Months | 912-1094 | 3.89% | 3.96% |
| 36 Months or 3 Years | 1095-1459 | 3.71% | 3.77% |
| 48 Months or 4 Years | 1460-1824 | 3.77% | 3.84% |
| 60 Months or 5 Years | 1825 | 3.77% | 3.84% |
Rates current as of December 20, 2024.Term share account with a minimum balance based on the tier to earn the quoted APY until maturity. Minimum balance $1500.00. Early withdrawals are subject to penalty. Dividends may be compounded or transferred to your share, extra savers, or checking account. Fees could reduce earnings on all accounts. |
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IRA Certificates
| # Months / Years | # of Days | Div Rate | APY |
|---|---|---|---|
| 3 Months | 91-181 | 4.04% | 4.12% |
| 6 Months | 182-272 | 4.13% | 4.21% |
| 9 Months | 273-364 | 4.14% | 4.22% |
| 12 Months or 1 Year | 365-546 | 4.14% | 4.22% |
| 18 Months | 547-729 | 3.92% | 3.99% |
| 24 Months or 2 Years | 730-911 | 3.89% | 3.96% |
| 30 Months | 912-1094 | 3.89% | 3.96% |
| 36 Months or 3 Years | 1095-1459 | 3.71% | 3.77% |
| 48 Months or 4 Years | 1460-1824 | 3.77% | 3.84% |
| 60 Months or 5 Years | 1825 | 3.77% | 3.84% |
Rates current as of December 20, 2024.Term share individual retirement account minimum balance based on tier required to earn the disclosed annual percentage yield until maturity. $1500.00 minimum balance. Dividends are compounded and posted monthly. Early withdrawals are subject to penalty. Fees could reduce earnings on all accounts. |
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What is a Share Certificate?
A share certificate enables you to earn a fixed interest rate over a specified duration. It’s a secure investment avenue where you deposit a certain sum and agree to keep it untouched for a pre-set term, typically spanning three months to five years.
The primary objective of a share certificate is to guarantee you a return on your investment. Unlike a conventional savings account, share certificates operate with a fixed term and a fixed interest rate. This means you can predict exactly how much you will earn over the certificate’s term and plan your finances accordingly. Additionally, share certificates generally offer higher interest rates than other savings accounts, making them a more enticing option for those seeking to maximize their earnings.
Investing in share certificates brings multiple benefits. First, it offers a secure route to grow your savings. The funds you deposit are insured by the National Credit Union Administration (NCUA) up to $250,000, offering you peace of mind. Second, share certificates provide higher interest rates than regular savings accounts, letting your money work harder for you. Finally, investing in a share certificate means committing to a fixed term, which can deter impulsive spending and promote long-term financial planning.
It’s crucial to consider a few key factors before opening a share certificate account. First, decide on the term length that aligns with your financial goals. Neighbors Federal Credit Union offers various term options ranging from 3 months to 5 years. Second, consider the minimum deposit required for a share certificate. Our credit union requires a minimum deposit of $1,500 to open a share certificate account.
At Neighbors FCU, we are committed to helping our members make informed financial decisions. Our share certificate accounts offer competitive rates and flexible terms to meet your savings goals.
Answering Frequently Asked Questions about Share Certificates
How are share certificate interest rates determined?
Interest rates on share certificates are shaped by several factors, including market conditions and the duration of the certificate. At Neighbors Federal Credit Union, we strive to offer our members the most competitive rates based on these factors.
Can I add funds to an existing share certificate?
Regrettably, once a share certificate is opened, you cannot add additional funds to it until it reaches maturity. However, you can open a new share certificate with additional funds if you wish to continue growing your savings.
If you have any further questions about share certificates or would like to open one with Neighbors Federal Credit Union, our knowledgeable staff is here to assist you. Contact us today to learn more about the benefits of share certificates and how they can help you achieve your financial goals.
What is an IRA Certificate?
An IRA Certificate is a fixed-term investment that can offer higher interest rates than a regular savings account, making it a great tool to kickstart your retirement savings.
The key feature of an IRA Certificate is its fixed interest rate and term. You have the guarantee of a certain return over the duration of the certificate, typically ranging from 3 months to 5 years. This makes it a great choice if you prefer stability and predictability in your investments.
IRA Certificate vs. Traditional CD
When planning for retirement, you might come across both Individual Retirement Account (IRA) Certificates and traditional Share Certificates. While they might seem similar, there are key differences that could impact your long-term financial goals.
One of the main differences is the tax advantages offered by an IRA. Contributions made to an IRA may be tax-deductible, and the earnings grow tax-deferred until you withdraw during retirement. Traditional Share Certificates, however, do not offer any specific tax advantages. You should speak to a tax professional to determine if an IRA Certificate might be right for you.
Opening an IRA Certificate
Choosing the right term and interest rate for your IRA Certificate is crucial. We offer various term options, ranging from 6 months to 5 years. Longer terms often offer higher interest rates, but consider your financial goals and risk tolerance when making this decision.
Managing Your IRA Certificate
Managing your IRA Certificate involves monitoring its performance and deciding what to do with the funds when the certificate matures. Regularly reviewing your IRA Certificate can help you assess whether it’s meeting your investment goals.
IRA Certificate FAQs
Can I contribute to an IRA Certificate if I already have an IRA?
Yes! An existing IRA doesn’t prevent you from opening an IRA Certificate. In fact, an IRA Certificate can be a great addition to your retirement savings strategy, offering a fixed interest rate and a guaranteed return over a specific period.
What happens if I withdraw funds from my IRA Certificate before maturity?
If you withdraw funds from your IRA Certificate before the maturity date, you may face penalties or forfeit some of the interest earned. The exact penalties depend on the specific terms of your IRA Certificate. Therefore, consider your investment goals and financial needs before making any early withdrawals.
When planning for your retirement, an IRA Certificate can be a great investment option. However, it’s crucial to evaluate your financial goals, compare it with other investment options, and understand your risk tolerance and time horizon before making a decision. Doing so can ensure that an IRA Certificate aligns with your needs and helps you achieve your long-term financial objectives.