Did you know that your savings portfolio should be diversified just like your investments?

Financial experts recommend giving your savings as much chance at growth as possible, and one way CommonWealth One helps you do that is by offering its members share (savings) certificates!

What is a share certificate?
A share certificate is an insured savings account with a fixed dividend rate with a set date of maturity, commonly referred to as a “term.” The funds in these accounts will grow at a rate that is usually higher than those of typical share savings accounts, and even some money market accounts, too.

How is a share certificate different from a savings account?
There are several differences between a share certificate and a share savings account, but the primary factor that sets them apart is the accessibility of the funds. Whereas a savings account will have minimal restrictions or penalties for withdrawing your money, the funds deposited into a share certificate cannot be withdrawn until the maturity date. If the account holder goes ahead and withdraws the funds, they’ll usually pay a penalty for early withdrawal, which can sometimes be more than the dividends it has earned.

Terms and conditions of certificates
As a member of Commonwealth One, you can open up a share certificate this week! However, there are some basic requirements. These include meeting a required minimum opening balance and committing to keeping your money in the account for a set amount of time.

The minimum amount of funds you’ll need to deposit to open a certificate will vary from one financial institution to the next and is sometimes dependent upon the term you choose. Some institutions will accept an initial deposit as low as $50 for a certificate. Others will require an opening balance of $100,000. In general, the more money you invest in a certificate, the higher the rate at which it will earn.

CommonWealth One offers a variety of options for share certificates, from as little as $50 and at terms from 6 to 60 months. Jumbo Certificates start with a minimum $50,000 deposit for 12 to 60 months. Right now, CommonWealth One members can open an 18-month share certificate and receive a 4.20% APY*. Just contact us Monday morning for information about opening your share certificate!

Is a share certificate for everyone?
While keeping your savings in a certificate can be an excellent way to diversify your savings portfolio, it is not for everyone. Before you go this route, ask yourself these important questions:

• Do I have an emergency fund set aside to help me get through unexpected events or circumstances?
• Do I anticipate needing to access these funds during the life of the certificate?

Only go ahead with your decision to open a share certificate if you are pretty certain you will not need to access these funds before the maturity date.

What are the advantages of diversifying your savings through a share certificate?

Here are some of the most popular reasons people choose to open a certificate:

1. Low risk. While nearly every investment carries some sort of risk, your money is always safe in a certificate. Any funds you have on deposit at Commonwealth One are insured by the National Credit Union Administration up to $250,000, you can rest easy knowing your money is secure.
2. Higher dividend rates. Certificates offer all the security of savings accounts, but with higher yields. It’s more for your money, just for choosing to keep it in a certificate for the term.
3. Locked-in rates. You’ll never stress over fluctuating national interest rates with a certificate. The APY is set when you open the account and is locked in until its maturity date. This way, you can determine exactly how much your money will earn over the life of the certificate the day you open it.

If a certificate sounds like the perfect choice for you, stop by Commonwealth One to learn more. We’re committed to helping you give your money its best chance at growth.