3 Reasons To Open A Share Certificate

Mar 15, 2022 Personal Finances

Why invest your money? One step on the path to financial success is understanding how to save your money and the best ways to do so.

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One step on the path to financial success is understanding how to invest your money and the best ways to do so. A product credit unions offer is a share certificate, a higher dividend account in which funds are set aside for a particular amount of time.

Not sure if a share certificate is the right option for you? Consider these three reasons.

Build Your Emergency Fund

Are you prepared to cover an unexpected expense? According to CNBC, some 56% of Americans are unable to cover an unexpected $1,000 bill with savings.

An emergency savings is usually defined as 3-6 months’ worth of living expenses for the purpose of covering unforeseen situation like medical emergencies or car repairs.

Share certificates are a great way to start building an emergency savings because of their high dividend rates and because the funds are inaccessible for a set term, so you won’t have the temptation to spend it.

If you think you might need the money sooner rather than later, choose a certificate that better suits your time frame. For example, our StartUP Certificate only requires $10 to open, has a term of 12 months, and you can add to it at any time (up to $1,000).*

Low-Risk Investment

Unlike stocks or other volatile investments, share certificate rates are fixed throughout the term. The U.S. Securities and Exchange Commission considers them one of the safest investments to make. You also don’t risk losing what you invest and the dividends earned on a certificate are yours to keep. Additionally, share certificates at credit unions are federally insured by the NCUA.

Special Features

Many financial institutions offer special programs or benefits for investing in a certificate with them. Common incentives include zero penalties for early withdrawals or higher interest rates for longer terms. For example, with A+FCU you can buy up the rate on many of our certificates by using PlusPoints, allowing you to earn even more on your investment.


*Dividends calculated on daily balance, paid monthly, and automatically transferred to Membership Savings account. Maximum balance=$1,000. Penalty may be imposed for early withdrawals. Limit one StartUP Share Certificate per member. Conditions and restrictions may apply. Subject to change without notice. Membership required. Federally insured by NCUA.

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Share Certificates

Save More For Your Future

Earn more from the money you save with a StartUP Certificate. Take advantage of this high-yield account option and get started for just $10.

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