What is a Share Certificate* (CD)? Share Certificates are savings ("deposit") accounts that require you to commit some of your savings ($500 minimum) for the specified period of time ("term") you select - for example 6, 12, 18 months or longer. In return for committing to the term that you select, you will earn a higher interest rate ("yield" APY) than that which you would earn from a typical savings account.
You want to make sure that you will not need the cash you invest, during the term of the Certificate you select. Because, unlike a savings account, with a Share Certificate (CD), if you withdraw your money during the term, you incur a penalty. To get the most out of a Share Certificate, you don’t want to withdraw the money until the end of the term — thereby allowing you to earn the most money possible on your investment.
How do I get a Share Certificate?
- Decide how much money you want to save/invest... Ask yourself, "How much cash do I not need access to as cash-flow for the next 6 months/12 months/18 months/etc..
- Simply place your savings into any of our fixed rate Share Certificates* (CDs) and watch it grow at the established rate - for the term you select. With a minimum deposit of $500, you can purchase the right Share Certificate(s) for you - from our variety of available terms.
- You will earn interest "dividends" on a monthly basis, that you can choose to either receive, or reinvest back into the certificate. Dividends are compounded monthly; paid on the first of each month.
WCTFCU's Share Certificates offer some of the best rates in the state! Select from among our various term lengths and earned interest rates (APY) listed below. Call us if you'd like to discuss or learn more!
Share Certificate Pro-Tip Take the money you want to invest and buy 3 different term'd Certificates. Split the money into 3 even piles — then buy 3 Certificates at varying term lengths in equal amounts. This gives you some flexibility on when you can get access to your cash (for spending or reinvesting), while optimizing the better interest rates paid on the longer term Certificates. This is called "laddering".
*"Share Certificates" are the Credit Union term for what banks call "CD's" or "Certificates of Deposit"
Q. What is a Share? See FAQ’s page.
Share Certificates of Deposit FAQs