Are you interested in a savings vehicle that offers a higher annual percentage yield (APY) than a typical savings account? A share certificate may be perfect for you! It locks up your deposit for a set period of time and pays a fixed percentage yield upon completion of the certificate’s term. Credit unions offer share certificates, which pay dividends and typically have better rates than banks due to being member-owned financial institutions. However, during the term, you cannot touch your money without paying a penalty. 

If you want to take advantage of higher rates on longer-term certificates while still keeping some funds accessible in the near term, consider a certificate ladder. This savings strategy involves investing in several certificates with staggered maturities. For example, you could divide $3,000 into three certificates with different maturity dates and yields. When each certificate matures, you can reinvest the funds into a new certificate with a higher yield to continue laddering. However, a Money Market account may be a better option if you need access to your funds soon. 

No matter your savings goals, NY TEAM Federal Credit Union is here to help!