For more than 90 years, members of Navy Federal Credit Union have enjoyed the perks that come with being part of our family: competitive savings rates, helpful financial tools, and guidance designed to help every dollar work a little harder. Among the most popular offerings are NFCU’s certificates, a smart addition to any savings plan focused on stability and safeguarding your hard-earned money.
So, what exactly is a certificate? Think of it as a dedicated savings account for a fixed sum that you agree not to touch until a set date. In return for locking up those funds, you earn a higher return than you would with a traditional savings account’s annual percentage yield, or APY.
Certificates are an excellent place to park larger amounts of money you know you won’t need soon. During that time, your balance grows steadily with guaranteed earnings.
Even if there’s a chance you may need access to your cash earlier than anticipated, certificates can still offer advantages and strategies you won’t find in risk-based investments like stocks or mutual funds.
One of the most effective is called certificate laddering. For instance, you could invest $1,000 in a 6-month certificate at a set savings rate, and another $1,000 in a 12-month certificate. When the shorter-term certificate matures, you can choose to use the funds plus dividends for bills or big purchases, or reinvest into a longer-term certificate for an even better rate. With several certificates maturing at staggered intervals, you maintain recurring access to penalty-free funds while still earning competitive returns.
You can learn more about certificate investment strategies with NFCU here.
Like most Navy Federal financial products, certificate options come in several varieties to support different savings and investment goals.
The Standard Certificate is ideal for anyone aiming to get the highest possible APY, featuring a $1,000 minimum deposit and rates up to 3.80%. Terms range from 3 months to 7 years. For those seeking a smaller entry point, the EasyStart Certificate offers terms from 12 to 24 months with a minimum deposit of just $50 and rates up to 3.70%.
The Special EasyStart Certificate boosts the rate to a standout 4.00% on deposits up to $3,000.
Whichever option suits your needs, incorporating certificates into your long-term plan is a reliable way to smooth out ups and downs in the market and ensure your savings keep growing. And with Navy Federal’s exceptional APY offerings, the benefits are even sweeter.
Let’s help you get started today.
This article was sponsored by Navy Federal Credit Union. Navy Federal Credit Union is federally insured by NCUA.