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Unlock more flexibility with this share certificate strategy

Matching a fixed term to your unique circumstances can be especially challenging at a time when rates are changing rapidly. To take advantage of those rates while maintaining quick access to your money, consider opening multiple share certificates with different terms.

3-minute read

In brief 

  • Share certificates earn dividends over a fixed term.  
  • Opening share certificates with different maturity dates can offer you more flexibility. 
  • Compare rates, terms, and specific features of each share certificate to find the options that work best for you. 

Share certificates simplified 

A share certificate is a specialized type of savings account similar to the certificates of deposit (CDs) offered by many US banks. You deposit your money in a share certificate for a fixed term. At UNFCU, the term can be as few as three months or as many as 60 months. When the certificate matures, you can renew it1, withdraw the money, or deposit the money in a different account. 

If you keep your money in a share certificate for the full term, you will enjoy two big advantages: 

  • Share certificates generally offer higher dividends than other savings accounts. 
  • The rate you earn will not go down over the term, even if rates are generally trending downward. 

Share certificates do require some planning ahead, because withdrawing money early can result in early withdrawal penalties. Let's look at how increasing the variety of your share certificates can make them a more flexible tool. This strategy is often referred to as diversification.  

Benefits of diversifying your share certificates 

Plan for your expenses more effectively 

If you open several share certificates with different terms, you can spread out the maturity dates. This way, some of your money will become available each time one of your share certificates matures. 

Think about the available terms in relation to times you may need more cash on hand. Are you planning a wedding? You could open a share certificate that will mature in time to cover the related expenses. Does your spending tend to increase during the holidays? You could consider another share certificate set to mature when your January credit card bill comes due. 

Adjust your strategy as needed 

Diversifying your share certificates can also provide you with more opportunities to review your savings strategy and adjust as needed. Each time one of your share certificates matures is a chance to look at the current rates. You can then make the decision whether to renew or open a different share certificate. When rates are changing frequently, staggered maturity dates provide you with more agility to react to market conditions. 

In summary

Saving for the future is a good idea for anyone, but everyone’s goals and needs are different. UNFCU share certificates come with a variety of different terms and features. With a diversified strategy, you can balance earnings and flexibility in a way that makes sense for you.

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