Certificate rates on the rise

This content is sponsored by PenFed

As the economy has recovered, different investment options are becoming more viable as others are becoming potentially more volatile. If you’ve never purchased a share certificate investment option, you may want to consider one now. And if you have considered or taken advantage of certificates in the past, now might be a good time to look at them again.

Why Now?

For several years, low interest rates kept earnings from certificates lower — although they were still a better investment than merely putting money in a traditional savings account. Now that interest rates and inflation have increased, certificate yields have become much more attractive.

Since the beginning of 2017, the Federal Reserve has raised rates five times. With this increase in interest rates, certificate rates have moved up. Plus, certificates offer a stable investment return that is federally insured up to $250,000. In the meantime, investments like stocks have shown serious booms and busts.

Certificate Refresher

As a reminder, a certificate is an investment that gains interest for a set amount of time. They come in a variety of term lengths during which time the money in them gains interest and is generally not available for additional deposits or withdrawals.

PenFed offers a range of certificates, with terms from 6 months to 7 years. Members can easily invest in these certificates online, so there’s no need to go into a branch. Or, if you’re not yet a member, open a certificate online as part of our easy member application process. Because it’s so efficient to open an account online, we can pass on the savings to you by offering some of the highest rates around — often several times the national average.

All our certificate products are federally insured to at least $250,000, so your investment is protected. If you have certificates with multiple banks that are about to reach maturity, consider consolidating them into one certificate with a new, higher rate.

Contact PenFed Credit Union to see our wide range of certificate terms and competitive dividend rates. Call 800-247-5626 or visit PenFed.org.

PenFed is federally insured by NCUA.

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