Share Certificate Accounts
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Guaranteed Returns. You read that right, guaranteed! Once you lock in your rate it won’t change.
Savings 101: What is a Share Certificate?
With so many financial products available, choosing which type of account to open can be just as stressful as deciding where to open one. For consumers looking for earnings on their savings, one of the options that credit unions offer is share certificates. Here’s a brief overview of how share certificates.
The Basics
Share certificates are a type of credit union savings vehicle similar to the certificates of deposit, or CDs, offered at banks. They usually offer higher yields than regular savings accounts; in exchange, you leave your money in the account for a specified amount of time, ranging typically from three months to five years. Longer lengths tend to have better rates than shorter ones. If you withdraw your money too early, you can be charged a penalty. In addition, money put into one of these accounts are federally insured. Share certificates and other accounts are insured for up to $250,000 through the National Credit Union Administration, or NCUA.
Certificate Rates
The dividends, or earnings, you can make on a share certificate are typically quoted in terms of the annual percentage yield, or APY. This rate takes into account the compounding period, which is the frequency with which returns are added to the account. Credit unions can choose to compound rates on a yearly, quarterly, monthly or even daily basis.
Guaranteed or Fixed Rate of Return
There are no unknowns when you invest in a share certificate. You pick the deposit amount, the term and the rate. As long as you don't withdraw the funds, you'll be able to calculate your dividends upon maturity at the onset of your investment.
Share Certificate Rates^
Rates effective June 1, 2023
| Term | Dividend Rate | APY* |
|---|---|---|
| 3 Months | 3.00% | 3.03% |
| 3 Months ($250K +) | 3.60% | 3.656% |
| 6 Months | 3.10% | 3.14% |
| 12 Months | 3.25% | 3.29% |
| 18 Months | 3.35% | 3.39% |
| 24 Months | 3.45% | 3.50% |
| 30 Months | 3.25% | 3.29% |
| 36 Months | 3.35% | 3.39% |
| 48 Months | 3.60% | 3.65% |
| 60 Months | 3.75% | 3.80% |
Youth Certificate Rates^^
Introduction to long-term savings!
Watch their savings grow. Guaranteed Returns. You read that right, guaranteed! Once you lock in your rate it won’t change. Share certificates are a type of credit union savings account similar to CDs, offered at banks. They usually offer higher yields than regular savings accounts; in exchange, you leave your money in the account for a specified amount of time.
Benefits and Features
- Available to members ages 17 & younger
- Minimum deposit of $50
- Maximum amount of $5,000
- Terms available are 3, 6, and 12 month terms
- Will add 0.10% APY* to our existing rates for our 3, 6, and 12 month terms.
| Term | Dividend Rate | APY* |
|---|---|---|
| 3 Months | 3.10% | 3.14% |
| 6 Months | 3.20% | 3.24% |
| 12 Months | 3.35% | 3.39% |
* Annual Percentage Yield (APY); based on a $1,000 example and assumes dividends remain in account until maturity.
^ Share Certificate: $500 minimum balance required. Your Term Share Certificate account will automatically renew for a term equal to the original at the prevailing rate at the time of renewal.
^^ Youth Share Certificate: $50 minimum balance required. Maximum of $5,000. Must be of the age 17 and under. When you have reached Your 18th birthday and upon expiration of Your Share Certificate, Your Account will be closed and Your entire balance transferred to a Share Certificate Account, subject to the terms and conditions of such Account.
The dividend rate for all Term Share Certificates is fixed for the term of the account. Dividends are compounded and paid quarterly. Substantial penalty for early withdrawal. For additional disclosures, see the “Membership and Account Agreement and Disclosures” brochure. Please call (765) 771-8000 for more information.
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FAQs
Is there a penalty for withdrawal?
Yes. 2 month terms or less have a withdrawal penalty of 90 days dividends. 12 -48 months terms have an early withdrawal penalty of 180 day dividends. 48+ month terms have an early withdrawal penalty of 360 days dividends.
Do I need an account at IFCU to invest in Share Certificate?
Yes, you need to become a member of IFCU to invest in a Share Certificate. You can become a member at the time you apply for the Certificate.
Can my rate change?
Once you lock in your rate, you are guaranteed that it won’t change for the term of the certificate.
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