What Is a Share Certificate?

Saving money is an important step toward a goal. Choosing where to keep it can help you make progress, too. If you have savings you won’t need right away, a share certificate offers a way to earn a return while setting that money aside for the future. Whether you’re planning a vacation, preparing for a major purchase, or building longer-term savings, understanding the basics can help you decide if a certificate fits your plans.

What is a share certificate?

A share certificate is a savings account offered by a credit union that earns dividends on money deposited for a specific period, called a term. Terms typically range from a few months to several years. With a fixed-rate certificate, your rate stays the same throughout the term. This makes your earnings more predictable and can help you plan around a savings goal.

How do you choose a certificate term?

Start with when you expect to use your money. A shorter term may fit an upcoming expense, while a longer term may suit a goal several years away. For example, if you’re planning a purchase next year, look for a maturity date that falls before you’ll need the funds. Compare rates across terms rather than assuming a longer commitment always offers a higher return.

Can you withdraw money early?

You can generally request an early withdrawal, but a penalty may apply. Depending on the account terms, that penalty could reduce your earnings and potentially your original deposit. Keep emergency savings and money for everyday expenses in an accessible account. Review withdrawal rules before committing funds to a certificate.

What happens when a share certificate matures?

Maturity is the end of your certificate’s term. Depending on the account, you may be able to withdraw your funds, renew the certificate, or choose a different term. Some certificates renew automatically, so review maturity notices and any grace period for making changes.

Is a share certificate right for you?

A share certificate may fit savings you can leave untouched for a set period. Before opening one, compare rates, fees, withdrawal penalties, maturity options, and applicable federal deposit insurance coverage. Choose an account that supports both your timeline and your need to access your money.

Ready to put your savings to work?

Explore our current Share Certificate rates and terms to find an option that fits your goals. Existing members can open online, by phone, or at a branch. New members can begin by reviewing membership eligibility and applying.