Grow Financial Federal Credit Union
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December 15, 2022

Looking for a Safe Investment? Try the Certificate Laddering Strategy.

A Grow Certificate Account is a safe investment 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?

If you want to maximize the earning potential of a Certificate Account, you can try a popular savings method called certificate laddering.

Building a certificate ladder

Say you have $2,500 to work with, and you’re looking for a safe investment. 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 of how you could create your own certificate ladder with that amount:

  • $500 in a 12-month Certificate Account
  • $500 in a 24-month Certificate Account
  • $500 in a 36-month Certificate Account
  • $500 in a 48-month Certificate Account
  • $500 in a 60-month Certificate Account

Think of each Certificate Account as a rung in your ladder. The lowest rung, your 12-month Certificate Account, earns the lowest rate and will mature in a year. At the end of that year, you can 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. The certificate laddering strategy works to your advantage because after some of your Certificate Accounts mature and are renewed into another 60-month Certificate Account, you’ll then be earning the highest possible rate while always having one account maturing every year. That gives you access to liquidity on a yearly basis free from early withdrawal fees, and you maintain the option to keep reinvesting at the best rate with new 60-month Certificate Accounts.

Safe investment? Check.

There’s no safe investment quite like a Certificate Account. Predictable, reliable returns and clear terms. When you’re ready to build your own certificate ladder, come talk to us at your nearest Grow store or open your Certificate Accounts quickly in Grow online or mobile banking.1 Happy earning!

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Existing Grow Members

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