Is it better to choose a long-term or short-term Share Certificate?

A Share Certificate, also known as a Certificate of Deposit (CD), allows you to earn dividends on funds deposited for a fixed period of time. In general, long-term Share Certificates often offer higher dividend rates than short-term Share Certificates, which may allow you to earn more on your savings over time. However, long-term certificates typically require you to keep your funds on deposit for a longer period to avoid potential early withdrawal penalties.

Short-term Share Certificates may be a better option if you expect to need access to your funds sooner or want the flexibility to reinvest when the certificate matures. They can also be beneficial if you prefer not to commit to a longer term.

When choosing between a long-term or short-term Share Certificate, consider your financial goals, anticipated cash needs, and the current rate environment. If you’re unsure which option is right for you, SFCU can help you compare available Share Certificate terms and determine which certificate best fits your savings strategy.