Concerned about the constant fluctuations of the stock market? Certificates of Deposit (CDs), what we also call Share Term Certificates, provide great short- or long-term investment options that are secured up to $500,000 and earn competitive rates.
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What Is a Share Term Certificate?
A share term certificate is a Certificate of Deposit (CD). A share term certificate, or CD, is a fixed rate, low-risk investment that typically has a higher interest rate than a savings account. Share term certificates require you to invest funds for a specific time to earn dividends and grow your savings. The length of a certificate can vary, but anywhere between three months and five years is most common. Access to your money is much more limited, and if you withdraw your money before the term ends, you will incur a penalty fee.
| Share Term Certificates and IRA Share Term Certificates | Regular | Jumbo | ||
|---|---|---|---|---|
| $500 - $99,999.99 | $100,000 and over | |||
| Dividend | APY¹ | Dividend | APY¹ | |
| 3 Months | 0.750% | 0.750% | 0.750% | 0.750% |
| 8 Months | 0.850% | 0.850% | 0.850% | 0.850% |
| 14 Months | 1.492% | 1.500% | 1.492% | 1.500% |
| 26 Months | 2.477% | 2.500% | 2.477% | 2.500% |
| 38 Months | 2.722% | 2.750% | 2.722% | 2.750% |
| 50 Months | 2.967% | 3.000% | 2.967% | 3.000% |
| 62 Months | 3.016% | 3.050% | 3.016% | 3.050% |
| 74 Months | 3.065% | 3.100% | 3.065% | 3.100% |
| 86 Months | 3.065% | 3.100% | 3.065% | 3.100% |
| 98 Months | 3.065% | 3.100% | 3.065% | 3.100% |
Contact a member service representative for further information about applicable fees and terms. For Share Certificates and IRA Share Certificates, a penalty will be imposed for early withdrawal. A.P.Y. is Annual Percentage Yield effective September 1, 2022 and is subject to change.
Pros to Investing in CDs and Share Certificates
Concerned about the constant fluctuations of the stock market? Or maybe you’re fortunate enough to have some extra savings and want to earn higher dividends? If you’re wondering why to invest in CDs, they provide great short- or long-term investment options that are secured up to $500,000 and earn competitive rates. Here are a few more reasons why you might consider investing in CDs:
● Guaranteed or fixed rate of return
● Low deposit requirements
● Federally insured
Short vs. Long-Term CDs
Before you obtain a share term certificate, you’ll need to figure out how long you’re willing to invest. Will you open a short- or long-term CD? CDs, offer higher interest rates when you lock in your money for a longer term. The trick is to find the correct maturity date for you. There are benefits to both short- and long-term CDs, so it’s crucial to find what works for you. Generally, short-term CDs are a lower commitment with lower rates. That means you have more flexibility in accessing your funds, but you’ll have to settle for lower rates compared to long-term CDs. Long-term CDs typically have the best rates but come with locking your money up for the entire term.
CDs can be a great tool if you discover the most suitable terms for you. Finding the best share term certificate, or CD, can give a boost to your savings and help in your pursuit of financial independence.
Why Choose BHCU?
At BHCU, we can help you answer your most important financial questions, like “Why invest in CDs?” or “What is the best certificate of deposit rate?”. We proudly serve residents and business owners in Delaware County, PA, with the most comprehensive banking tools to support our members’ long-term savings goals. For more information or to inquire about share term certificates, contact us today or call 610-595-2929 to speak with a member of our team. We look forward to hearing from you
