A Quick Guide to Certificates

If you’re looking to build your savings, you may have come across the term “certificate,” but if you’re like many people, you may not understand exactly what one is. Fortunately, opening a certificate (sometimes referred to as a certificate of deposit, or a CD, at banks) is a straightforward process.

What is a Certificate?

A certificate is a savings product that typically offers a higher interest rate than a traditional savings account. The interest rate is fixed for the duration of the term. The term is how long the certificate is open, which you’ll decide when you open the account. Terms typically range from as short as three months and as long as 60 months (five years). To fully benefit from the higher interest rate, you must leave the funds untouched for the full term. If you withdraw funds before the maturity date, you may face a financial penalty.

Once the term ends, your certificate will mature. At that point, you have a set number of days, typically ten, to withdraw the funds without incurring any penalties.

Rather than withdraw the funds, you can also increase your savings by choosing one of two options:

• Renew your certificate. If you don’t want to make any changes to a PSECU certificate, it will automatically renew for the same term on its maturity date. No action is required on your part if this is the option you choose. Please note, however, that your rate may change based on current offerings.
  
  
• Change to a new term. If you want to keep your funds growing but prefer to adjust the term, check out the current rates to see what’s best for you. Then, contact us by the maturity date of your certificate to let us know which new term you’d like to choose.

What are the Perks of Opening a Certificate at PSECU?

A certificate is a smart option for saving if you don’t need instant access to your cash because it allows you to earn more interest on your money than you would in a traditional savings account.

At PSECU, your certificate comes with plenty of perks, as well. Some of these include:

• You can open a certificate with as little as $500¹.
• We offer competitive rates.
• Funds in certificates are federally insured by the National Credit Union Administration (NCUA) up to $250,000².
• There are no monthly maintenance fees for your certificate.
• Interest is accrued daily and compounded monthly.

How Can You Open a Certificate at PSECU?

The steps needed to open a certificate at PSECU will depend on whether or not you’re already a member of the credit union.

If you’re already a PSECU member, you’ll simply need to:

• Log into online banking.
• Open the drop-down menu.
• Select Add a Product and then Certificate.

If you’re not already a PSECU member, you’ll need to:

• Open a PSECU account.
• Enroll in digital banking.
• Follow the instructions above for current PSECU members.

Take Advantage of Rising Rates

Don’t miss your opportunity to lock in your certificate rate. Check out our available options and choose the term that works best for you today. Use the Certificate Earnings Calculator to see how much you can earn based on your opening deposit and the term you choose!

¹ If your withdrawal plus penalty takes the certificate below the required minimum $500 balance, your certificate will be closed and the penalty will be calculated on the entire balance. 

² All PSECU deposit shares, including checking, Regular, additional savings, money market and certificates, are federally insured by the National Credit Union Administration (NCUA) up to $250,000, the maximum allowed by law. In addition to the $250,000 of insurance provided on an individual account or combination of individual accounts, you are also insured up to $250,000 for any combination of accounts you may hold jointly with other individuals.

View  Truth in Savings Account Disclosures.