Share Certificates vs. Money Markets

Share Certificates vs. Money Markets

You have a few extra bucks lying around. Although you want to travel and buy expensive things for yourself, your subconscious is telling you to invest and SAVE! Luckily, at UKRFCU, we have a few savings options for you to choose from such as a Share Certificates and Money Markets. But you don’t know what option is best for you? First, let’s learn what these Savings options are:

Share Certificates

A Share Certificate is a savings option where you put your money into an account and receive a certain dividend rate if held for a specific term. Share certificates are issued for a certain period, usually between three months and five years. Funds are not available for immediate withdraw since a penalty can be assessed if any portion of the principal is withdrawn before maturity. A Share Certificate is a good option if:

  • You do not need to access your funds any time soon. Remember, the longer the term, the higher the rate.
  • You can deposit a certain amount into the account and meet the minimum opening balance, which is $500. Remember, the bigger the deposit, the higher return.
  • You want to receive a higher dividend rate than a regular Savings account.
  • My Choice Share Certificate allows a one-time rate increase corresponding with current advertised 24-month or 36-month. My Choice 60-month Share Certificate allows a two-time rate increase. If you choose these types of Share Certificates and the rate increases during this period, you can increase the rate.
  • Deposits of $75,000 or more can add 0.25% to the advertised Annual Percentage Yield. If you have more than $75,000, you can receive a higher return.
  • If you want to start saving for retirement, IRA Certificates are available. Lock your funds until retirement and enjoy later.

To learn more about UKRFCU’s Share Certificates, please click here.

Money Markets

A Money Market is a savings options that offers an adjustable rate and the ability to withdraw funds at any time without incurring a penalty. Dividend rates are typically higher than a regular Savings account, but it usually requires a higher minimum deposit. There’s also usually a certain minimum balance required to receive a higher rate. If funds fall below the minimum balance, you will not receive that specific dividend rate. A Money Market is a good option if:

  • You want to receive a higher dividend rate than a regular Savings account.
  • You want access to your funds at any time without incurring a penalty. Remember that the minimum balance requirement must be met.
  • You can deposit a certain amount into the account and meet the minimum opening balance, which can range from $1,000 and higher.
  • You can choose from a Classic or Premium Marketing depending on your initial balance.

To learn more about UKRFCU’s Money Markets, please click here.

Although both accounts are great Savings options, the ultimate choice is yours. Remember to read full disclosures for more information.