In the Financial New Year, safeguard and grow your wealth with certificates

This content is sponsored by PenFed

There is a strong argument to be made that the fall should in fact be the beginning of the new year.  With the kids back in school, the dog days of summer behind us and cooler temperatures ahead, this is the time we most closely associate with the business of getting back to business.

No wonder so many companies mark this period as the end of their fiscal year. The fall is when many companies take a more in-depth look at their books with the objective of making smarter decisions about investments and expenditures.

Consumers can take a cue from the business world and use this time to get their own proverbial financial houses in order as well.

Working Big to Small

The difficulty with any new project, especially a financial one, is in knowing where to start. For consumers, beginning the process by strategizing long-term ways of safeguarding — while growing — existing wealth is a logical first step. And one of the best ways of doing this is by investing in certificates, sometimes referred to as “certificate of deposits” or “CDs” by banks.


Certificates are just like savings accounts in that consumers deposit money into them. They then earn dividends on their deposit over time. However, unlike a savings account, consumers must leave their money in a certificate for a predetermined period. That agreed upon amount of time is generally what gives a certificate a higher rate of return than a typical savings account.

The How and Why

Through PenFed, members have access to a range of certificate terms, starting at just six months and going all the way to seven years. The longer a certificate’s term length, the higher the rate of its return.

With the sustained growth of the economy in recent years, certificates are performing well. With generally better yields than a savings account, certificates offer a stable investment return that is federally insured by up to $250,000 – insulating the bearer from the volatility of riskier investments like the stock market.

Keeping It Simple

Part of putting one’s financial house in order involves simplification. For example, many families have multiple certificates held by a myriad of financial institutions. If this is you, consider rolling your holdings into a single high-yield certificate.

PenFed’s Better Rates

PenFed certificates are available nationwide. There is no need to stop by a branch. You can easily open a certificate online or by phone. If you are not yet a PenFed member, opening a certificate online is an easy part of the application process.

Unlike a bank, PenFed is member-owned, so the organization passes all of its returns to its members. This is how the credit union offers some of the highest certificate rates available today — often several times the national average.

To find out more, contact PenFed Credit Union to learn about a wide range of certificate terms and competitive dividend rates. Call 800-247-5626, or visit

PenFed is federally insured by NCUA.

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