Share Certificates
If you're looking for a safe, long-term investment strategy, a Share Certificate is a great place to start. With all the ups and downs on the stock market, it's reassuring to know that a Carter Federal Certificate Account will never lose its original value. The dividend-earning rate is higher than a standard savings account and the terms are flexible: from 182 days up to five years. Your minimum deposit of $1,000 will get you started earning interest today.
Ladder Your Investments for Maximum Return!
A recent 5-yr study showed that by laddering Carter Federal share certificates, members earned an extra $3,435 more than those who practiced short-term investing-reinvesting in 1-yr certificates.
Laddering offers a low-maintenance approach with steady returns and ready access to cash without penalties because a certificate matures every year. In almost any rate environment, the longer term maturities will carry the highest rate.
| Year 1 |
Buy a 1,2,3,4 and 5-year certificate. |
| Year 2 |
Your 1-year certificate matures. Reinvest as a 5-year certificate. |
| Year 3 |
Your 2-year certificate matures. Reinvest as a 5-year certificate. |
| Year 4 |
Your 3-year certificate matures. Reinvest as a 5-year certificate. |
| Year 5 |
Your 4-year certificate matures. Reinvest as a 5-year certificate. |
Follow this plan and you will have five 5-year certificates with one maturing each year! Carter Federal has some of the best rates around.
In some rate environments laddering may not out-perform short-term investing. However, laddering does provide a low-maintenance approach with steady returns and ready access to cash without penalties, since a certificate matures every year. In almost any rate environment, the longer term maturities will carry the highest rate.
Terms
The minimum term for a Share Certificate is6 months and the maximum term is 60 months.
Rates
The minimum deposit to open a certificate is $1,000. Certificates 36 months and longer receive an additional .10% if they have more than 2 relationships (accounts) Amounts over $50,000 are considered Jumbo Certificates and will receive an additional .125% on their rate.
Penalty
Prior to the maturity of the certificate the member will receive a renewal notice. The member may choose to let the certificate renew at the current term or they can choose another avenue. If the member chooses a different option they have 10 days after the maturity to do so without penalties being accessed. Special Certificate offers may not be renewable.
IRA Certificates
All terms and conditions are the same as other share certificates (assuming all IRA rules are adhered to) with the exception that normal withdrawals may be made without penalty for early withdrawal at any time during the term of the certificate by owners age 59½ and older.
For more information, please contact the credit union.
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