Saving for your future is one of the most important decisions you can make – the sooner you start, the more you’ll have. It’s an easy way to create peace of mind for many reasons, and while there are many reasons to save, there are also many ways to save.
For some, the saving has reached a point where funds are simply waiting for bigger and better opportunities. This is where a certificate might just come in handy.
But what is a certificate? How does it work? And how do I know if it’s right for me?
In many ways, a certificate is a lot like your traditional savings account. But, in a lot of ways it isn’t. Similar to the bank issued Certificates of Deposits (CDs), with a certificate , you are agreeing NOT to touch your deposit/s for a set amount of time. The longer the term length of the certificate you choose, the longer you are committing to keeping those funds with your financial institution.
Of course, investing all of your money into a certificate isn’t going to be the fastest way to grow your portfolio. However a good rate can make all the difference in your financial plan. The one big advantage over a savings account is that with a certificate the rates are almost always higher.
Additionally, certificate specials will have fixed rates, meaning the rate won’t change during the term of the certificate. But remember, with a savings account you can move your cash in and out as often as you’d like. Early withdrawal penalties can differ, but with a certificate account, if you don’t plan ahead, you could end up losing some or all of the interest you’ve accrued.
By making smart decisions with investments certificates can be a viable option for solid returns on your deposit/s. And at Wauna Credit Union, your funds are insured up to $250,000 through the National Credit Union Administration.
Contact your local Wauna Credit Union branch to see if a certificate is right for you. Our mission is to provide you with opportunities to build your financial well-being. It’s important that we offer options and alternatives that make sense for you.
Take a look at our current our Certificate Special here.