Let’s take a look at an especially great choice for diversifying your savings without market risks: a share certificate.

What is a share certificate?

A share certificate is an insured savings account with a fixed dividend rate and a fixed date to earn that dividend rate, known as the maturity date. The funds in these accounts will grow at a dividend rate that is usually higher than typical savings and money market accounts.

How is a share certificate different from a savings account?

There are several differences between a share certificate and a savings account, but the main one is accessibility. With a savings account, you will have minimal restrictions on withdrawals, whereas with a share certificate, funds cannot be withdrawn without a penalty before the maturity date.

Terms and conditions of certificates

As a member of Jovia, you can open a share certificate account at any time. There is a minimum balance requirement and set terms to choose from ranging from 3-months to 5-years. Check out Jovia’s current share certificate rates and terms here.

Is a share certificate for everyone?

While keeping your savings in a certificate can be an excellent way to diversify your savings, it’s not for everyone. Before opening a certificate, consider whether you will need access to these funds before the maturity date. If the answer is yes, opening a share certificate account may not be the best idea.

What are the advantages of diversifying your savings through a share certificate?

Here are some of the most popular reasons people choose to open a certificate:

  1. Low risk. The National Credit Union Administration (NCUA) insures funds up to $250,000, so you can rest easy, knowing your money’s safe.
  2. Higher dividend rates. Share certificates offer all the security of savings accounts but with higher yields.
  3. Locked-in rates. The APY of your share certificate is set when it’s open and is locked in until its maturity date.

How do I get a share certificate?

If a share certificate sounds like the right choice for you, apply today!

APY = Annual Percentage Yield