No, we aren’t talking about your old CD player. When rates are back on the rise, it matters where your money is being deposited. Traditional savings accounts are slow to respond to those increasing rates, as your wallet will continue to feel the pinch of inflation. A CD might be the right type of account to move your savings into.
A CD is called a Share Certificate here at a credit union or known as a Certificate of Deposit at a bank. It is a special kind of savings account with a fixed interest rate that is usually higher than your average savings account. These Share Certificates have a term and a maturity date, meaning your rate and the funds inside are deposited and stay in the account for that amount of time until the maturity date rolls around. Then, you can withdraw the money without a penalty, or it rolls over into whatever the rate is at that point in time. These terms can range anywhere from a few months to several years, based on your unique needs. Now that you know what a Share Certificate is, here are a couple situations when they may be right for you:
Interested in learning more about our Share Certificates (CDs)? Visit necu.org/share-certificates to find the best option for your unique needs and put your money to work.