Share Certificates vs Money Markets
You have some cash and are in between investments. Until you're ready to make a long-term investment, you need to put your money somewhere, but what's the best option? Share Certificate (similar to banks' Certificates of Deposit) and Money Market accounts are both great short-term investment products that will yield more than a regular savings account, but it's important to know which best suits your needs and priorities.
A Share Certificate is similar to a certificate of deposit (CD) issued by a credit union that pays a certain dividend if held for a specific period or term. Funds are not "liquid," as a penalty is usually assessed if any portion of the principal is withdrawn before maturity.
In general, Share Certificates are a good choice if:
- You do not need to access your funds for a certain length of time, usually a minimum of 30 days (the longer the term, the higher the rate)
- You want to calculate your expected earnings at the outset of the investment
- You want a federally insured investment product with a guaranteed rate of return
- You can meet the minimum opening balance requirement, typically between $500 and $1,000
- You want a higher interest rate than a Money Market Account or Regular Savings Account
Money Market Accounts
A Money Market Account is a special savings account that offers an adjustable rate and the ability to withdraw funds at any time without incurring a penalty.
Invest in a Money Market Account if:
- You want a higher savings rate than a regular savings account
- You want access to your funds at all times without incurring a penalty (as long as the minimum balance requirement is met)
- You have the minimum opening deposit, typically between $0 and $10,000
- You want a federally insured investment product
Thanks For Exploring All UNIFY Has To Offer!
You’re now leaving the UNIFY Financial Credit Union website for a third-party site that services our members. Don’t Panic! We just wanted to let you know that their privacy and security policies might differ from ours, and give you the option to continue. Thanks again for visiting UNIFY…come back soon!