Hello, my name is Ashley R. I am an MSR I. My job is assisting members with new accounts, debit cards, certificates, as well as many other things. I’m going to tell you a little about certificates.
We offer multiple types of certificates here. We have your Share certificates, Youth certificates, Youth Jump Rate certificates, Jump Rate certificates, Save to Win certificates, IRA certificates, and IRA Jump certificates.
SHARE CERTIFICATE- Regular certificates, also known as traditional certificates or fixed-rate certificates, are the simplest type of certificates. With these, you deposit a certain amount of money for a certain length of time (the “term”), and the bank or credit union pays you a fixed rate of dividends for the length of that term.
HOW IT WORKS- If you purchase a 12-month certificate, you’ll keep your money locked in the account for a year and earn a fixed return on your initial investment.
YOUTH CERTIFICATE- Youth certificates are the same as share certificates, some just have a smaller minimum deposit and a shorter term. We also have youth jump rate certificates.
JUMP RATE CERTIFICATE-A jump rate certificate gives you the option to switch to a higher APY one time during the term of your certificate at no extra charge, with no extra commitment or penalty.
HOW IT WORKS-Let’s say you put money into a certificate for a three-year term. After nine months, certificate rates go up. A jump rate certificate lets you jump to the new APY, without changing the rest of the details of your certificate or receiving a penalty.
SAVE TO WIN- "Save To Win" is a unique certificate. It is a certificate you can continue to add money to for the life of the certificate. The minimum opening deposit is $25. Additionally, every $25 min. deposit enters you into a monthly and quarterly cash prize drawings ranging from $25 to $5,000. You may also withdrawal 1 time from a Save to Win for a $25 penalty. You do have to be 18 to have a Save to Win. For the full set of rules, please visit our Save To Win page.
IRA CERTIFICATE-IRA certificates let you purchase certificates as part of your individual retirement account (IRA) where it will sit and gain more in dividends for the term selected. With no penalty for doing so.
IRA JUMP RATE CERTIFICATE- Same as the normal jump rate certificates. You can do so for IRA certificates to get a higher APY if the rate has gone up. Can only jump 1 time per certificate term.
*APY = Annual Percentage Yield
All certificates that are termed (closed) early do have a certain penalty amount depending on the term selected.
This blog is not on behalf of Peninsula Federal Credit Union.
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