Share Certificates

A share certificate is similar to a certificate of deposit (CD) at a bank. It’s a savings product that offers a guaranteed rate of return over a set term. You agree to keep your money in the account for the term length, and in return, you earn a fixed dividend rate, making it a low-risk way to grow your savings.

Rates vary based on the term you select. Share certificate terms commonly range from 3 months to 60 months. Once you lock in your rate at the start of your term, it won’t change, giving you a guaranteed rate of return.

Once your share certificate is opened, you can’t make additional deposits. If you want to add to your savings over time, consider our other savings options that allow ongoing deposits.

When your share certificate reaches the end of its term, you’ll have a few options. You can withdraw your funds, renew for another term, or transfer the balance to another account. We’ll notify you before your certificate matures so you can decide on the best next step.

Yes, you can withdraw your funds early, but early withdrawals come with a penalty:

• For certificates open 6 days or fewer: Penalty of seven days’ dividends.
• For terms of 12 months or less: Penalty of 90 days’ dividends.
• For terms longer than 12 months: Penalty of 180 days’ dividends.

If you need easier access to your funds, consider opening a traditional savings account or money market.

In certain situations, early withdrawal penalties may be waived, such as:

• Purchasing a home
• Addressing medical or long-term care needs
• Paying for tuition or educational expenses
• Converting to a different investment product with MCU

If you think you might need to access your funds before the end of your certificate term, a savings account or money market could be a better fit. While share certificates offer higher returns, they’re best for funds you feel comfortable setting aside untouched until maturity.