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Afraid of Long-Term Commitment?

Having trouble deciding between a short-term and long-term share certificate investment strategy? What if rates rise and my money is already invested? What if I need to access the funds before my share certificate matures?

We can help by answering some frequently asked share certificate questions.

Q:

Is it the best time to invest in longer term share certificates?

A:

While only you can answer this question, now is a great opportunity to take advantage of our competitive rates available on longer term share certificates. Below, we compare purchasing a 60-month versus a 12-month share certificate. In the example provided, rates would have to increase an average of at least 0.82% per year for the next four years to have the same 60-month average yield as compared to purchasing a 60-month share certificate.
 

Purchasing a 60-month share certificate vs. purchasing a 12-month share certificate
(and renew 12-month certificate four times for the total term of 60 months)

Share Certificate Term: APY*:
 60 Month  2.50%
   
   
   
   
 Total Term = 60 Months  Average APY: 2.50%
   
   
   
   
   
   
   
   
 Share Certificate Term:  APY:
 12 Month  0.85%
 12 Month  1.67%
 12 Month  2.49%
 12 Month  3.31%
 12 Month  4.13%
  Total Term = 60 Months  Average APY: 2.50%

 *APY (Annual Percentage Yield) as of 51/2017.

Q:

Is it financially sound to purchase a long term certificate and take an early withdrawal penalty if I need the funds before maturity?

A:

While a penalty may be imposed for withdrawals made before maturity, in the current yield environment it may be financially beneficial to incur the penalty to gain access to the longer term, higher yielding certificate. For example, using APYs as of 5/1/2017:
  1. If funds are held in share savings for 24 months you will earn an APY of up to 0.55%.
  2. If funds are invested in a 24-month share certificate you will earn an APY of 1.00%.
  3. If funds are invested in a 60-month share certificate at an APY of 2.50% and you take an early withdrawal penalty after 24 months your net earnings after penalty will be equivalent to an APY of 1.87%.

Q:

Can I withdraw only my share certificate dividends if I choose?

A:

Yes, you may choose to withdraw only your share certificate dividends without penalty.

Q:

What is the minimum balance requirement to open a share certificate?

A:

The minimum balance required to open a certificate account is $500.00.

Q:

How easy is it to open a new share certificate?

A:

The process to open a new share certificate is simple.
  • Contact the Credit Union directly for us to assist you in opening a new share certificate.
  • Log in to our secure online banking solution, APCIRCUIT® PC Home Banking Service, and click the Services tab and then select Continue after the Open a Sub Account listing on the Services page. Under Open Sub Account, select Share Certificates and then click Submit. Continue to follow the prompts and in minutes your new share creation will be complete. The new share certificate details will be available to view the next time you log in to APCIRCUIT. Click here to view a complete How To Guide.

  To learn more important information about our share certificates view our Truth in Savings Disclosure.