2023 Financial Tips: How you can Benefit from a Camino Time Certificate

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For many people, a new year is a clean slate and an opportunity to advance toward financial goals. However, when it comes to growingcamino time certificate of deposit your savings, many investment options can be complicated and come with risks. Fortunately, a Camino time certificate account eliminates risk and provides a guaranteed rate of return. 

While opening an account and making a deposit will grow your savings, there are strategies you can use to make them grow even more. Learn the advantages of opening a time certificate account and how to get the most out of one:

Why Open a Camino Time Certificate

Fixed-Rates and Guaranteed Growth

One significant benefit of opening a Camino time certificate account is it eliminates risk. As long as you don’t touch the money, you are virtually guaranteed growth. Time certificates feature guaranteed rates of return over a predetermined length of time. 

Currently, at Camino, we are offering 11-month and 24-month options. Also, there is a correlation between the growth you will see and the terms you set. The longer the term, the higher the rates and the greater the return.

Flexibility and Security

A Camino time certificate also serves as a flexible, secure financial tool. First, when you open a time certificate account, you can determine how long you want to deposit your funds and tailor this investment to your unique financial goals.

Another key benefit of this account is that you can decide how much you want to deposit and, in turn, how much interest you receive. Also, in a time certificate account, your funds are backed by the NCUA, a type of federal insurance.

Low Deposit Requirements

Many forms of investments require a large initial deposit to realize a meaningful return. With a Camino time certificate, however, you can earn guaranteed returns with a deposit as low as $2,500. 

This low initial deposit requirement makes this investment strategy more accessible and easier to capitalize on.

Strategies to Get the Most Out of a Camino Time Certificate 

While opening a Camino time certificate account is a great start to growing your savings, it is important to also consider strategies that can amplify the return on this investment. Here are three key strategies to consider employing:

A Laddering Strategy

Laddering is a strategy that minimizes the interest rate and reinvestment risk. With this strategy, a person would take the total amount they plan to invest and divide it equally across Camino time certificates with staggered maturity  dates. 

This strategy enables you to take advantage of various interest rates with each term without sacrificing flexibility. Ultimately, this strategy takes time, but it offers a reliable flow of interest income you can enjoy in the future. 

A Barbell Strategy

A barbell strategy emphasizes dividing funds to invest in short-term and long-term Camino time certificates only as opposed to staggering terms. This strategy offers greater flexibility and reduces how long it takes for accounts to mature.

This strategy is particularly beneficial for those with concrete short-term and long-term goals they want to save for.  

A Bullet Strategy

A bullet strategy is ideal for those opening a Camino time certificate account with big savings goals. This strategy entails investing in several certificates over time and emphasizes the specific maturity date.

A bullet strategy generally provides a higher rate of return, which equates to more money upon maturity. For example, if you are saving for college, you can deposit funds as you approach this goal and earn more from the investment. 

Call Us to Learn How a Camino Time Certificate Can Make Your Savings Shine

Traditional investing can feel like a gamble. However, when you open a Camino time certificate account, you turn this gamble into a sure thing. With guaranteed rates of return and flexible terms, this is a great option to reach your financial goals. At Camino, we are committed to the financial success of our members. 

To learn more about the benefits of these accounts and the ideal strategies to use for your financial situation, visit us at caminofcu.org, call us at 800-835-3400, or contact us