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share certificates

Is this a Good Time to Open a Share Certificate?

Q: I’m looking for a place to park my savings, and one option I’m considering is a share certificate. Is this a good time to open one?

A: Today’s economic climate makes share certificates a fantastic and secure choice for growing your funds. Let’s take a closer look at this type of savings account and why this is the perfect time to open one.

What is a share certificate?
A certificate is an insured savings account with a fixed dividend rate and fixed date of maturity, or term. The dividend rates of these accounts are usually higher than those on savings accounts, but access to funds is more limited.

Is this a good time to open a share certificate?
With recent reports showing inflation cooling, and with dividend rates higher than any time in recent memory, this can be a great economic climate for opening a certificate. Here are three reasons why this is a great time to open one:

1. High dividend rates.
When investing in an account possessing a locked-in dividend rate, that rate is of the utmost importance. In today’s high-interest environment, funds in certificates will likely have a favorable rate. The national average yield for savings accounts is 0.56% (annual percentage yield), according to Bankrate’s Sept. 11 weekly survey of institutions. At Justice Federal, we are currently offering a 7-Month Certificate starting at 5.20% APY* and a 17-Month Certificate starting at 5.00% APY.*

2. Reliable interest rate.
Most high-yield accounts have variable rates that fluctuate along with the national rate. Rates for certificates, however, are locked in for the entire account term. This is an especially beneficial feature during an environment of high interest rates and an uncertain economic future. With today’s volatile economic climate, the stability of certificates makes them a great choice for investors.

3. Safety and security.
The security of your funds is always a priority, but in light of recent bank failures, it’s more important than ever. Investors are looking for ways to protect their funds from market fluctuations and other forms of instability, so a certificate gives them the security they need. Certificates at Justice Federal are federally insured by the National Credit Union Administration up to $250,000. Your money is always safe here.

Share certificates have always been a favorite choice for investors who are seeking a secure and high-yield account for their funds. In today’s economic climate, they’re more popular than ever.

To learn more about the certificate options available to you, or to open a new certificate today, visit jfcu.org/Certificates.

*APY= Annual Percentage Yield. APY is subject to change without notice. Rate effective October 1, 2023. Minimum balance of $500 required. A penalty will be imposed for early withdrawal from certificate accounts. Fees or other conditions may reduce earnings.

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