Grow Financial Federal Credit Union
July 11, 2019

How to Grow Your Money With Certificate Accounts, Step by Step

A Grow Certificate Account is a safe way to earn a sure return. Basically, all you do is set some money aside for a while and watch it grow. You can start with as little as $500 and select terms from six months to five years. The longer the term, the more you earn. Simple, right?

Opening just one, however, doesn’t quite maximize the earning potential of a Certificate Account. That’s where laddering comes in. But don’t worry. Laddering isn’t nearly as complicated as putting together furniture from Ikea.

Building Your Ladder.

Say you have $2,500 to deposit in a Certificate Account. Let’s divide that into amounts of $500 spread across five Certificate Accounts of different terms, all opened at the same time. Here’s an example, using Grow Certificate Accounts at current rates:

  • $500 in a 12-17-month Certificate Account with an APY of 1.60%1
  • $500 in a 24-29-month Certificate Account with an APY of 2.10%1
  • $500 in a 36-47-month Certificate Account with an APY of 2.30%1
  • $500 in a 48-59-month Certificate Account with an APY of 2.40%1
  • $500 in a 60-month Certificate Account with an APY of 3.00%1

Think of each Certificate Account as a rung in your ladder. The lowest rung, your 12-17-month Certificate Account, earns the lowest rate and will mature in a year. At the end of that year, deposit the money, (both your original $500 plus the dividend you’ve earned), into a new 60-month Certificate Account, which will always earn the highest dividend.

You’ve just taken the first step up your ladder. As each Certificate Account matures, you simply repeat the process. Step by step, the money you save and the dividends you earn go up, up and up. And, if you need to access your savings, you’re never more than a year away from one of your Certificate Accounts maturing.

See? Nothing complicated. Laddering is an easy way to make the most of your money, and you don’t even need an Allen wrench. Just visit your nearest Grow store and be sure to ask about our IRA Certificate Accounts, which offer both competitive dividends and tax advantages, to really give your savings a boost!2

Grow Savings Accounts are subject to ChexSystems® approval.
1Annual Percentage Yield. The APYs are accurate as of 8/7/2018 and may change without notice after the account is opened. Fees could reduce earnings on the account. A penalty will be imposed for early withdrawals. You must maintain a minimum daily balance of $500.00 in your account each day to obtain the disclosed APY. If your account falls below the minimum balance requirements, your account will be closed.
2Certain restrictions apply. Not all tax payers are eligible. Consult your tax advisor.


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