Grow Financial Federal Credit Union
January 9, 2020

Exploring One of Grow’s Most Popular Savings Options

Deciding what to do with extra money doesn’t need to be stressful. Among numerous options to grow your savings, Certificate Accounts stand out as reliable, safe investments with solid returns. Read on to learn more about certificates and details about setting up a Certificate Account at Grow.

What is a Certificate Account?

Also referred to as share certificates at other credit unions, Certificate Accounts are a popular savings instrument for members who seek a safe investment with a good rate of return. With rates typically higher than standard savings accounts or money market accounts, certificates offer better returns because of the agreement by the member to leave the money in the account for a specified amount of time (known as the “maturity date”). In general, the longer you agree to leave the money in the Certificate Account, the better the rate of return. (Rates and offers can vary, so stay updated with the current Grow rates here.)


Higher rates: The earnings (dividends) you’ll make on a Certificate Account are quoted in annual percentage yield, or APY. This takes into account the frequency of compounding and provides an easy-to-compare rate of return between financial institutions.

Security: A primary benefit of certificates is their low risk, and they are known as one of the safest possible investments. In exchange for your time commitment, Grow provides a guaranteed return. Plus, Certificate Accounts at Grow Financial are insured through the National Credit Union Administration (NCUA).

Structure: You can select a maturity date anywhere from six months to 60 months, so certificates are a great option if you have some time to let the money sit and accrue the interest. If you have at least $500 extra sitting in a traditional savings account (or under your mattress—we won’t point fingers), you may want to consider opening a Certificate Account.

Potential Drawback

Early-withdrawal penalty: If you need to withdraw your funds before the maturity date, you can do so, but you may incur an early withdrawal penalty. To avoid this, we recommend selecting a time frame that works best for you and ensures you can leave the money for the full term. Additionally, some members use the early-withdrawal penalty as a personal incentive to save and motivation to let the money grow.

Specialty Account: IRA Certificate

This type of account can be a great component of your retirement plan. Since you won’t need the money for a while, you can use time to your advantage and amplify your returns with a stable, safe investment. With balances of $500 or more, you get the best of everything—the security of a Certificate Account plus potential tax advantages* related to saving for retirement that can jumpstart your savings and provide maximum benefit long-term.

Ready to start doing more with your money? Add a Certificate Account to your savings portfolio today! Visit our website to get started.

Accounts are subject to approval.
*Certain restrictions apply. Not all tax payers are eligible. Consult your tax advisor.

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