Here’s Everything You Need to Know
If you’re looking for a simple, low-risk way to grow your savings, a share certificate may be the perfect fit. Offered by credit unions like Freedom Credit Union, a share certificate lets you earn a guaranteed, fixed rate in exchange for keeping your money in the account for a set period of time.
Whether you’re saving for a future goal or just want better returns than a traditional savings account, share certificates are a smart, secure choice.
How Does a Share Certificate Work?
A share certificate is similar to a bank CD (certificate of deposit), but it’s offered by a credit union. Here’s how it works:
- You choose a term (anywhere from 6 months to 5 years)
- You make a one-time deposit—often starting at $500 or more
- You lock in your interest rate for the full term
- You earn fixed returns—no surprises, no market risk
- You withdraw at maturity (or reinvest it)
It’s that simple. The longer the term, the more you typically earn.
Benefits of a Share Certificate
✅ Guaranteed Earnings
You’ll know exactly how much you’ll earn—your rate is fixed, so it won’t change during the term.
✅ Higher Rates Than Savings Accounts
Share certificates usually offer higher Annual Percentage Yields (APYs) than regular savings accounts, especially for longer terms.
✅ Safe and NCUA Insured
Your funds are federally insured by the NCUA up to $250,000 per member. That means your money is secure, no matter what.
✅ Great for Future Goals
If you won’t need your money right away, a share certificate is a great way to let it grow.
What to Know Before You Open One
- Early withdrawal penalties apply
If you take out your money before the term ends, you may lose some of the interest you earned. - Minimum deposits may be required
Check the current minimum for your preferred term. - Rates are fixed
This means they won’t go up during your term—but also won’t go down.
Example: How Much Can You Earn?
Let’s say you open a 12-month share certificate with a $5,000 deposit at a 4.00% APY. After one year, you’ll earn about $200 in interest, giving you a total of $5,200—without any extra effort.
For longer terms, your rate—and your returns—can grow even more.
APY is for example purposes only. Actual rates may vary. Contact us for current terms and rates.
What Is Laddering?
Laddering is a savings strategy where you open multiple share certificates with different maturity dates. This gives you regular access to your money while still locking in competitive rates over time. It’s great for members who want flexibility and consistent earnings.
Who Should Consider a Share Certificate?
A share certificate could be right for you if:
- You have extra savings you won’t need right away
- You prefer guaranteed, fixed returns
- You want better rates than a regular savings account
- You’re looking for a safe, insured investment option
Whether you’re saving for retirement, a future purchase, or just building your financial safety net, a share certificate can help your money grow with confidence.
Why Choose Freedom Credit Union?
As a member-focused credit union, we’re here to help you reach your financial goals—with local service and products that put your needs first.
When you open a share certificate at Freedom Credit Union, you get:
- Competitive rates and flexible terms
- Personal service you can trust
- Secure savings, federally insured by the NCUA
- A way to earn more while keeping your money safe
Start Earning More Today
Share certificates are one of the simplest, most reliable ways to boost your savings. With great rates, flexible options, and the peace of mind that comes with NCUA insurance, you can save with confidence.
Stop by your local branch or visit our website to explore current rates and term options.
Federally insured by NCUA.
Early withdrawal penalties may apply and could reduce earnings. Minimum deposit requirements apply. Contact us for current APYs and terms.
Interested in joining Freedom Credit Union?
Ready to open your share certificate?
