What is a Certificate?
Life gets so busy and moves so fast sometimes it is hard to remember to keep saving money towards the top of your priority list. Depending on where you are in your financial journey, a Certificate might be right for you. You may have heard of a Certificate, but don’t know what it actually means. At some financial institutions, it may be referred to as a Certificate of Deposit or a CD. This type of savings account seems to be everywhere, but there are often questions around these accounts. If you are confused, don’t be embarrassed. There are so many savings accounts options out there, it’s hard to keep track of all of them. It is also hard not to get overwhelmed by all the informational material that is out there and available at the tap of a button. If you would like to learn more about the Certificates that Gurdian Credit Union offers visit our page here.
With this being the case, it is still important to be informed about the different accounts that are out there. Certificates are made for long term saving. They have maturity dates that are set when the account is open. This means that you can’t take the money out of the account until that maturity date is reached, without an often-steep penalty. With this stipulation these accounts have higher interest rates and will earn more money over time compared to other saving accounts. If you can put money aside and not touch it for long periods of time, this is the account for you.
It is important to remember that if you need to access the money in a Certificate before the maturity date, there will be penalties, normally in the form of fees.
Although there are penalties for taking the money out before maturity. Don’t let it scare you into avoiding a certificate account. If you have the resources to put money in an account for a set amount of time, these types of accounts can open your financial future up for success!