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Finances August 7, 2018

For a Guaranteed Return on your Investment, Look to a Share Certificate

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Guarantees in life are hard to come by. When it comes to investing, they can be even harder. That’s why share certificates are particularly attractive to those searching for a low-risk investment option with a guaranteed return.


What is a share certificate?

A share certificate is like a certificate of deposit or CD, except share certificates are issued by credit unions. The benefits of a share certificate investment are fixed rates and defined terms. Essentially, you know exactly what you’re going to get for your investment. Share certificates are commonly issued for one- to five-year terms, and rates are usually fixed.

Low minimum balance

With several options offering a low minimum balance requirement, share certificates fit a wide variety of budgets and are extremely accessible entries into the investment world. With as little as $1,000, even the most novice of investors could open a share certificate and choose from a range of competitive rates and terms.

Varying term lengths

Term lengths vary from provider to provider, but most share certificate terms are one- to five-year commitments. Typically, the longer the investment term the higher the yield. Unlike a savings account, accessibility to the funds is limited and in most cases, there are fees for early withdrawals. The rewards for your commitment to the investment are better rates and guaranteed returns.

Whether you’re new to investing or simply searching for a guaranteed return, the reliability of a share certificate delivers.

Low risk

Share certificates are an ideal option for those seeking investments with little or no risk. Whether you’re new to investing or simply searching for a guaranteed return, the reliability of a share certificate delivers. Fixed rates and defined terms mean you know exactly the dividends you stand to earn.

Eliminates the unknown

Many investment scenarios are market driven. If you put money into an account with variable rates that are influenced by the market, your return on investment is constantly changing. The benefit of an investment with a guaranteed return is the elimination of the unknown, which allows you to plan for the future more accurately. With dividends defined, you can plan your next investment move with the funds that you know will greet you on the other end of the share certificate term.

Benefits beyond a savings account

Savings accounts are a good option if you need constant access to the funds. However, if you have enough money saved that you can comfortably invest some and leave it untouched for one to five years, share certificates make a lot of sense.

Choosing local over global

Have questions about share certificates? Want to discuss the terms and rates in detail, or review additional investment scenarios? Face-to-face conversations with local credit union experts provide real value, especially to those who are unfamiliar with investing or share certificates.

Defined terms and guaranteed rates: there aren’t many investment options that offer that kind of stability. Share certificates provide a stress-free investment scenario. If you’re prepared to make an investment beyond your typical savings account, Member One’s personal banking experts are ready to help.

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