Credit Union Certificate of Deposits Several people, including students, are joining credit unions to experience the benefits. Credit unions are gaining popularity due to low interest rates for checking accounts, savings accounts and credit cards. They offer their members security and perks that other banks don’t offer their customers. Alternate advantages offer members control of their money through direct member involvement. The result is consumer-friendly services with lower APRs. Therefore, services like opening a certificate of deposits with a credit union is the smart alternative. Banks offer the same service but with strict approach and higher interest rates. Opening a Certificate of Deposit A certificate of deposit (CDs) is much like a savings account. However, a certificate of deposit offers a higher investment return. CDs store your money for general savings purposes, increased retirement funds or other reasons. Opting for a CD rather than a savings account has its benefits. Here is some information to consider: Lock Your Money– With a CD, your money is committed for a certain length of time ranging from 3 months to 5 years Lock Your Rate– Lock a guaranteed fixed interest rate for the duration of the term Increasing Time- By increasing your length of term, you’ll experience a higher investment return No Fluctuation– CDs do not fluctuate as stock and bonds due when the market is altered by any situation Maturity Date– Pick a maturity date so that dividends compound monthly No Early Withdrawal– To protect your investment, early withdrawal of money is not allowed. Penalties will be implemented. Certain dates are set for withdrawal. Minimum Deposits– Minimum deposits to open a CD is at the discretion of the credit union and may vary Contact Us For more information on certificates of deposits, contact the Harlingen credit union branch of Valley Federal Credit Union at 956-425-5668 or the Brownsville main office at 956-546-3108.
