What’s a Certificate?
First, let’s talk about what a Certificate actually is. A Certificate holds your money over a specific amount of time and earns dividends on that money as long as you keep it there for full length of the term. You can typically choose from a variety of set terms, each with a specified Annual Percentage Yield (APY).
Benefits to Certificates
There are several benefits Certificates. For one, you’re investing but not assuming any risk to your money. Certificates are giving you the chance to get a guaranteed return on your money at a higher rate than a typical savings account. The more money you put into the investment, the more your money will grow. (Minimum amount to open a Sikorsky Credit Union Certificate is $500)
You have the flexibility to choose which set of terms and rates will work for you. At Sikorsky Credit Union, our Certificates have terms ranging from 3 – 60 months with APYs ranging from 0.04% APY to 2.50% APY depending on the term you choose. The longer the term, the higher the dividends.
It’s a great way to start building an emergency savings account
. Because it’s tucked away and earning dividends, you can set up your emergency account and watch it grow from the sidelines. However, it's important to note that if you would take the money out early when an emergency happens, you may have to pay a penality.
There are many different ways you can invest your money, and it could be hard to find out what is the best option for you. When it comes to investing, Certificates can be an excellent, safe option for those who have some extra money set aside in savings. But what makes a Certificate different from other types of savings and why should you open one? Keep reading to learn more.