Things to Consider When Opening A CD
Saving Money Should Be An Easy Decision
Is a Share Certificate Right for You?
If you've been steadily building your savings and are ready to see your money grow a little faster, you may be considering a Share Certificate. Similar to a Certificate of Deposit (CD) at a bank, a Share Certificate is a savings product offered by credit unions—like Superior Credit Union—that rewards you with higher interest in exchange for leaving your funds untouched for a set period of time.
Before opening a Share Certificate, it’s important to understand how it works and how it can support your financial goals. Here's what you should know:
What Is a Share Certificate?
A Share Certificate is essentially the credit union equivalent of a Certificate of Deposit (CD). Both products function similarly: you agree to deposit a fixed amount of money for a specific term, and in return, you earn a higher, fixed interest rate than you would with a standard savings account. The key difference is in the name and structure. Because credit unions are member-owned cooperatives, your deposit represents a “share” of ownership—hence the term Share Certificate. While banks offer CDs, credit unions offer Share Certificates with the same basic features but often better rates and member-focused terms.
1. What are you saving for?
Identifying your savings goal is the first step. Are you working toward a long-term goal like buying a home or funding education? Or are you looking to create a consistent stream of returns with staggered maturity dates? If you'd like a regular flow of funds becoming available over time, consider a Share Certificate ladder—a strategy that involves opening multiple certificates with varying terms. As each one matures, you can reinvest at the current rate, access your funds, or both.
2. Which term is best for your timeline?
Share Certificates are available in a range of terms, often from as short as 3 months to as long as 5 years or more. The longer the term, the higher the potential return. If you're saving for a specific purchase, choose a term that ends just before you’ll need the funds. If you're more focused on earning interest and don’t need immediate access, a longer-term Share Certificate may be a better fit.
3. How are you protected from interest rate changes?
One of the benefits of a Share Certificate is that your rate is locked in at the time of opening. At Superior Credit Union, your interest rate will not change, regardless of what happens in the market. If rates go down, you’re protected. If rates go up, you can reinvest at the new, higher rate once your certificate matures.
That’s why Share Certificates are considered low-risk—they offer stability, predictability, and guaranteed growth over time.
4. Can you add funds during the term?
Some credit unions offer Share Certificates that allow a one-time “top-off” or additional deposit during the term. Most do not, however, so it's important to ask before opening one. If you think you might want to increase your investment during the term, make sure to choose a certificate that offers this feature—or consider staggering your deposits through multiple certificates.
5. Will you need this money before maturity?
Share Certificates are best for funds you won’t need to touch until the end of the term. Withdrawing early typically results in a penalty that may reduce your earned interest—or even a portion of your principal in some cases. Be sure to select a term that aligns with your financial timeline, or talk to us about other flexible savings options if your situation might change.
Let’s Talk About It...
At Superior Credit Union, we’re committed to helping you make confident, informed financial choices. If you’re considering a Share Certificate, stop by any branch to speak with one of our knowledgeable team members. We’ll walk you through your options, explain the benefits, and help you find the term and rate that best fit your goals. Your savings should do more than sit still. Let’s make it work for you—with the power of a Share Certificate.
