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The FAQs of Share Certificates

March 28, 2016

By: Stacy Yu

Everyone knows about savings accounts.  But what about share certificates?  For individuals who do not need immediate access to their funds, share certificates are a great investment option.  With share certificates, owners have the opportunity to earn higher dividends than a regular savings account, without the risks found in other investments.

Here's how they work:

Who Should Get a Share Certificate?

Share certificates work best for those who will not need to access their funds for a fixed period of time.  Similar to their banking counterpart, Certificate of Deposits (CDs), funds invested in share certificates cannot be withdrawn prior to the completion of term-length without penalty. 

How are Share Certificates a Better Option to Savings Accounts?

With share certificates, investors are able to earn higher dividends than with a regular savings account.  At MAFCU, we take this one step further and continuously research all of our area competitors to make sure that our rates are higher than anyone else's in Montgomery County – including other credit unions.

Are the Dividend Rates Fixed or Variable?

All dividend rates for share certificates are fixed.  "Step-Up" certificates are available and allow investors to move to a higher dividend certificate mid-term.

Why are Share Certificates a More Secure Saving and Investing Option?

For funds up to $250,000, share certificates are federally insured by government agency, National Credit Union Administration (NCUA).  

How Long are Share Certificate Terms?

To suit your financial access needs, several term-length and conditions are available.  At MAFCU, term lengths range from 3 months to 5 years.

How Much Do You Need to Invest To Open a Share Certificate?

MAFCU has a wide range of share certificates available.  For Regular & IRA Accumulator Certificates, only $250 is needed to open an account.  All other certificate options require a minimum investment of $1000.

How Much Can I Invest?

That is up to you!  Investors can put as little as $250 into an 18-month Regular Share Certificate.  Jumbo Certificates are also available for those looking to invest $50,000 or more.

Can I Deposit Additional Funds Into My Account Mid-Term?

Yes!  With Accumulator certificates, you can make additional deposits throughout the 18-month term. 

Can I Invest in More than One Share Certificate?

Absolutely.  Investors are welcome to open multiple share certificate accounts.  For a more flexible investment structure, "Laddering" share certificates is also option.  "Laddering" means that investors split funds across multiple certificates that mature at different times, rather than placing the entire investment into a single share certificate account.  Using this structure, investors can have more access to their funds while enjoying higher dividend rates.


Want to know how MAFCU's Certificates stack up?  Check it out here and contact us for more information.

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