Unlock the Benefits of Share Certificates: A Safe and Rewarding Way to Grow Your Savings

What Is a Share Certificate?

A share certificate is a savings account that allows you to earn higher dividends (interest) in exchange for committing your funds for a set period of time. When you open a share certificate, you agree to deposit a certain amount of money for a specific term, which can range from a few months to several years. In return, the credit union pays you a guaranteed dividend rate for the duration of the term.

Key Features of a Share Certificate

• Fixed Terms: Share certificates typically have terms ranging from 6 months to 5 years.
• Guaranteed Rate of Return: The dividend rate is locked in when you open the account, so you know exactly how much you'll earn.
• Minimum Deposit Requirements: Most share certificates require a minimum deposit to open, which can vary by financial institution.
• Penalty for Early Withdrawal: Withdrawing funds before the maturity date usually results in a penalty, making it important to plan carefully.

Benefits of a Share Certificate

1. Higher Dividend Rates Share certificates typically offer higher dividend rates compared to regular savings accounts. The longer the term of the certificate, the higher the rate tends to be, allowing you to maximize your earnings.
2. Safety and Security Your funds are insured up to $250,000 by the National Credit Union Administration (NCUA), providing peace of mind that your money is protected.
3. Predictable Returns Since the dividend rate is fixed, you can calculate exactly how much your investment will grow over the term of the certificate.
4. Flexible Terms Whether you're saving for a short-term goal or a long-term milestone, share certificates come with a variety of term options to suit your needs.
5. Encourages Savings Discipline By locking your funds in a share certificate, you're less likely to dip into your savings for impulse purchases. This makes it a great tool for achieving financial goals like building an emergency fund or saving for a down payment.

Is a Share Certificate Right for You?

Share certificates are ideal for individuals who:

• Have a lump sum of money they won’t need immediate access to.
• Want a low-risk investment option with guaranteed returns.
• Are looking for higher dividend rates than a traditional savings account can offer.

How to Get Started

Opening a share certificate at Maine State Credit Union is simple. Determine how much you want to deposit, choose a term that aligns with your goals, and lock in your rate. Our team is here to guide you through the process and answer any questions you might have.

Learn More about our Share Certificate Options.