Why it’s a good time to earn more with a 6-Month Certificate
Trying to maximize your savings? That’s smart! But let’s face it, finding the right place to invest that hard-earned cash can be a bit tricky. Why? Well, the financial world can be like a roller coaster – unpredictable and rapidly changing. But don’t worry, we’re here to help you find ways to grow your money. A certificate of deposit (CD) may be a good low-risk choice if you would like to earn a competitive interest rate for a fixed amount of time.
Ever heard of a share certificate? A share certificate and a Certificate of Deposit (CD) are twins! The only difference? Banks offer CDs, while credit unions give out share certificates. The best part? Your money is safe in a share certificate, guaranteed by the NCUA for the entire life of the account. So, you can rest easy knowing your money is secure.
With a 6-month certificate, you get:
• a low-risk way of investing your money
• a way to earn higher-interest guaranteed returns
• the flexibility to access your funds relatively quickly with a shorter-term
For many individuals looking to save, a six-month certificate hits the mark perfectly. It provides an opportunity to earn at a higher interest rate than a regular savings account, allowing your money to grow faster without being tied down to a long-term investment.
A key reason to consider short-term certificates now is their currently appealing interest rates. While traditionally, CDs with longer durations have offered higher returns, in today’s economic climate, it’s the short-term CDs that are delivering the most impressive yields.
At TEG Federal Credit Union our 6-month share certificate is earning 5.00% APY.
Benefits of a TEGFCU 6-Month Certificate*:
• 5.00% APY
• Minimum opening deposit: $500
• Term lengths from 3 months to 11 months
• Dividends paid monthly
*Penalty fee for early withdrawal
Alternatives to 6-month CDs:
Savings Accounts: These accounts typically pay only a modest interest rate. They are a safe and reliable way to manage your short-term cash needs. With a savings account, you won’t face the early withdrawal penalties like would if you break your six-month Certificate before the end of its term.
Money Market Accounts: These accounts usually offer higher interest rates compared to other savings accounts. However, they come with a limitation on the number of transactions you can conduct each month. Additionally, it’s worth noting that a high-yielding six-month certificate could potentially offer better returns than a money market account.
High-yield Savings Accounts: These accounts offer rates that are typically competitive, but variable. Since they are subject to change, if the overall interest rate environment decreases, the interest rate on your high-yield savings account will also likely drop.
But that won’t happen with a share certificate. You’ll continue to earn the same high rate throughout the full duration of the certificate’s term.
Our 6-month Share Certificate is a great choice for a variety of benefits: its high-interest rate, easy access, low risk, and predictable returns. If you’re looking for a safe and effective way to boost your short-term savings, consider investing in TEG’s attractive 6 to 11-month certificate that is currently available.