How is a Share Certificate Account different from a regular savings account?

With a regular savings account, you can generally make deposits and withdrawals at any time while earning dividends based on the account’s current rate. A Share Certificate (CD), on the other hand, requires you to keep your funds on deposit for a set period, such as several months or years, in exchange for a guaranteed dividend rate for the term of the certificate.

Because funds are committed for a fixed term, Share Certificates often offer higher dividend rates than regular savings accounts. However, withdrawing funds before the certificate’s maturity date may result in an early withdrawal penalty.

A Share Certificate can be a good option for members who want to earn a higher return on savings they do not need immediate access to, while a regular savings account may be better suited for everyday savings and emergency funds.

The minimum deposit required to open an SFCU Share Certificate is $500. Higher dividend rates may be available for certificate balances of $100,000 or more.