We all have New Year’s resolutions and one of the most popular resolutions is to become financially secure. Why not start off 2019 in the right direction? A share certificate is a great way to start. Not to mention its NCUA insured, has a better dividend rate than a savings account, and is safer than the stock market.
Before you invest your money, it’s good to get a better understanding of what a share certificate really is.
What am I saving for?
If you’re saving for a rainy day, you’ll need the flexibility to withdraw your money quickly, so consider a short-term share certificate, which typically has small penalties for early withdrawal. If saving for a goal like a vacation or a house, consider a long-term share certificate which earns a better dividend rate.
If you’re looking for something short term, you’re in luck! OE Federal is currently offering a special 15-month share certificate. Click here to learn more or call 800.877.4444.
Looking for something a little more long term? We’ve got that too! Click here to learn more.
What are the penalties?
A penalty will be assessed for early withdrawal. For shorter terms, average penalties for early withdrawal are one to three months of earned dividends. For longer-term share certificates, penalties can range from three to six months of earnings.
What is a dividend rate?
A share certificate has a dividend rate. The APY (Annual Percentage Yield) represents the total amount of interest you earn over one year, assuming you do not add or withdraw funds for the entire year. It includes your interest rate and the monthly compounding interest, which is the interest you earn on your principal plus the interest on your earnings.
Whether or not you think a share certificate is right for you in 2019, it’s important to remember, you should deposit your money with an institution you trust like OE Federal. We are here for you – to help you make the best financial decision for your lifestyle and family. If you have questions about share certificates, give us a call at 800.877.4444 or visit your local branch.