Notice: We are currently experiencing intermittent connectivity issues.  Online Banking and Mobile Banking are currently unavailable. Thank you for your patience as we work diligently to resolve this issue.
Notice: Campbell Branch is currently closed due to building maintenance. We apologize for the inconvenience and appreciate your understanding.
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Notice: Our Gilroy branch is currently experiencing intermittent connectivity issues. Thank you for your patience as we work diligently to resolve this issue.
System Maintenance: On Saturday, June 8th, we’ll be performing a scheduled maintenance starting at 9 p.m. PST and ending at 4 a.m. PST on Sunday, June 9th. During this time, Online, Mobile, and Phone Banking will not be available. Thank you for your patience as we update our systems to better serve you.
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County Federal will never call, email or text you to ask for information. Questions? Dial us directly at 800-282-6212 - we’re happy to help.
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All County Federal offices and branches will be closed on June 19th, in observance of Juneteenth.
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Are you impacted by the severe weather? Contact us today to apply for our Emergency Relief Loan.

Share Certificate Shopping: How To Keep Your Money Spinning

Share Certificate

Share Certificate Shopping: How To Keep Your Money Spinning

Share Savings Certificates are an excellent savings option. They’re NCUA-insured, they’ve got a better dividend rate than a savings account, and they’re generally safer than the stock market.

Before you lock your money up, though, answer these questions:

1. What am I saving for?

If you’re saving for a rainy day, you’ll need the flexibility to withdraw your money quickly, so consider a short-term certificate, which typically has small penalties for early withdrawal. If saving for a goal like a vacation or a house, consider a long-term certificate which earns a better dividend rate.

2. What are the penalties?

For short terms (under one year), average penalties for early withdrawal are one to three months of earned dividends. For longer-term certificates, penalties can range from six to 24 months of earnings. There may be a flat fee as well.

If flexibility is important to you, choosing a certificate with lower penalties will allow you to make withdrawals if needed. If you’re confident the money you’re saving won’t be needed before the certificate matures, ignoring penalty terms might allow you to secure a higher dividend rate.

3. What kind of certificate is right for you?

The language surrounding certificates can be somewhat confusing. Here are some of the more common types:

A Jumbo (or high-dividend) Certificate is an account with a higher minimum deposit – around $10,000. The only downside is having your money locked up for the term of the certificate.

A Bump-up Certificate enables you to take advantage of rising dividend rates. If you buy a certificate at 1.5%, and after six months (for instance), the institution is offering the certificate at 3%, you can “bump up” your rate to 3%.

A Callable Certificate lets the institution pay back the deposit early and avoid paying dividends on the remaining term. If you buy a Callable Certificate at 3% and, after the “call” period is over, the institution is offering certificates at 1.5%, it can pay back your principal in full along with the dividends you’ve accrued to that point.

An Add-on Certificate provides you with an opportunity to make an additional deposit at some point over the term. You will earn dividends on the new amount going forward.

A Liquid Certificate allows you to make a limited number of withdrawals over the course of the term without paying a penalty. These accounts usually have a minimum deposit and may have a set amount of time which must pass before withdrawals can be made without penalty.

4. How important is the dividend rate?

Although it’s tempting to grab the highest dividend rate you can find, a tenth of a percent is not likely to make much of a difference over the course of the term. Look at the terms of service, the level of support, and the flexibility provided by the certificate before looking to earn another miniscule quantity of dividend.

Most importantly, deposit your money with an institution you trust. Certificate agreements can be cumbersome documents, and some institutions might use that density to hide a clause that can cost you. Doing business with an institution that’s there to help you is the best move for your money in the long term. County Federal is here to help you get started on your certificate needs.

Content Source: CUContent

NCUA
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.
Equal Housing Lender
Certified - CDFI - US Department of the Treasury
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