3 Benefits of Opening a Certificate Account

If you’re searching for a way to protect your savings, while still earning a solid return, a certificate might be the solution. Also known as share certificates at credit unions, these specialized savings accounts can help you steadily grow your funds. Here’s why certificates can be particularly useful in an unsteady economy.

What Is a Certificate?

A certificate is a type of savings account with a fixed term—anywhere from a few months to several years—and a set interest rate, often called an Annual Percentage Yield (APY). Unlike regular savings accounts, your money is locked in until the certificate matures. In return, you can typically earn a higher interest rate.

What Are the Benefits of Certificates?

1. Potentially Higher Rates than Traditional Savings
   Because you agree to “lock in” your funds for a set term, many credit unions and banks offer higher rates on certificates than they do on standard savings accounts. Certificate accounts also have the advantage of staying at the same (fixed) rate for the duration of the certificate’s term, unlike savings or checking account rates, which may occasionally fluctuate. a certificate will remain consistent over the length of your term. If you’re comfortable setting money aside, you could see a more robust return.


2. Certificate Fixed, Predictable Returns
   Once your certificate is opened, the rate doesn’t change. You’ll know exactly what you’ll earn once the certificate matures. That’s the strength of a certificate. You can predict exactly when you will need to use the money and open the account at an appropriate time. It makes saving for life events so much easier


3. Flexible Term Lengths
   Whether you need your money in a few months or a few years, there are certificates with varying maturities to accommodate your financial needs and goals. You can even open multiple certificates—sometimes called “laddering”—to stagger their maturity dates. That way, you’ll have set time periods when funds become available, which can be reinvested or used as needed.

Certificates can be a smart way to grow your savings at a steady rate and pace —especially if you have a clear timeline and don’t need immediate access to your funds. While they don’t guarantee safety from every type of market shift, they offer a clear path. By doing a bit of research and planning ahead, you can make an informed decision on whether this time-tested savings tool fits into your financial plan.

For specific rates and details on how to open a certificate, you can visit our website, or stop by a Nuvision Credit Union branch. Your path to more focused saving could begin with a simple conversation about certificates.