A Certificate Account offers our members a set rate of interest on a specific sum of money for a particular period of time. Certificates have an established minimum investment amount and a predetermined maturity period. No additional deposits can be added to a Certificate after it has been opened and no partial withdrawal of principal is allowed without penalty.
The interest rate is fixed for the duration of the Certificate and will not fluctuate. Interest is paid quarterly and can be added to the Certificate or deposited to the account of your choice.
Certificate Terms
A Certificate is a great way to earn higher annual percentage yields. Summit Credit Union Certificates come with a variety of Terms. Plus they provide a liquid and worry-free investment.
With only a Minimum Deposit of $500.00, you can choose any term or combination of terms to "ladder" your rolled over investments.
6 to 11 Months
12 to 23 Months
24 to 35 Months
36 Months
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TIP: Earn More When You "Ladder" Your Certificates
You can increase your overall Certificate investment return and retain liquidity with a technique called "laddering." For example, instead of investing $5,000 into one certificate, invest into 4 separate credit union certificates. Purchase 6-month, 12-month, 18-month, and 24-month certificates. As each certificate comes due, roll it into a new, higher-yield certificate. When you invest this way, you will have 1/4 of your funds coming due every six months. By the end of 24-months, all of your certificates will be receiving the highest dividend. You can also take advantage of special periodic rate specials when available to maximize your returns.
Consider the Benefits
Staggering maturity dates ensures that you will always have access to part of your funds every six months.
Laddering the maturity dates gives you the opportunity to reinvest at least some of your savings in higher yield certificates should rates go up.
You can ladder your maturity dates to match the timing of your financial goals, such as: college tuition, vacation plans, home improvements, retirement, or anything else you are saving for.
Laddering Is the Safe Saving Strategy
Because your Summit Credit Union deposit accounts are federally insured, Certificates offer the benefits of a guaranteed fixed income with no risk to your principal. Call or stop by the credit union office. We can help you establish a regular savings plan that works for you.
Minimum Deposit: The minimum deposit required for a Summit Credit Union Certificate is only $500. Certificates may be opened in any amount greater than the minimum. Higher yielding Investor Certificates are available with a minimum deposit of $25,000.
Interest Rate: The available interest rates on Certificates are subject to change weekly. Rates are based on general market conditions. Interest is compounded and paid quarterly.
Service Charges: All of your Certificates funds work for you because Summit Credit Union Certificates have no transaction costs or service fees.
Borrowing Privileges: Members may borrow money from the Credit Union at special interest rates by using their Certificate as collateral. This type of loan can be set up as either a term note with no payment due until the Certificate matures or as a monthly installment loan.
Early Redemption: Certificates may be redeemed prior to maturity; however, there are interest penalties for early withdrawals. A member who cancels a 6 Month Certificate will lose 90 days interest or all interest earned, whichever is less. A member who cancels a higher term Certificates will lose 180 days interest or all interest earned, whichever is less. Accumulated interest may be withdrawn from the Certificate at any time without a penalty being imposed.
Renewing/Maturing Certificates: Approximately 30 days prior to maturity, Summit Credit Union will mail a notice to remind you of the maturity date. Certificates will automatically renew into a new certificate for a 6, 12, 24 or 36 month term (determined by the opening term) at the then offered interest rate for that term unless you specifically request that the principal and accumulated interest be transferred into another deposit account or withdrawn at maturity.
Watch Your Savings Grow Over Time!
