What are High-Yield Certificates?

posted in: Financial Tips 0
High Yield Certificates at Camino Federal Credit Union

Maybe you have financial goals you would like to achieve faster, like saving for a downpayment on a house. High-yield certificates could be a great option to streamline how quickly you can reach them. Or maybe you’re more interested in a safe and secure way to invest your money. These certificates can also be the key to opening the door to new opportunities. 

At Camino Federal Credit Union, we have been serving the Montebello community since 1941 with financial products tailored to each member’s situation and goals. Learn how high-interest certificates could maximize your savings and make your finances shine.

What Are High-Yield Certificates?

High-yield certificates are a type of certificate account that earns more interest at a fixed rate than a traditional Certificate or savings account. 

When you open a Certificate, they hold a fixed amount of money for a set period of time and offer a guaranteed return at the end of that term. A good rule of thumb to understand how Certificates work is the longer the term, the greater the return. 

What Are the Benefits of High-Yield Certificates?

High-yield certificates offer several advantages to members. Benefits these financial products offer to Camino members include: 

  • Fixed, competitive rates and guaranteed earnings
  • Greater dividends and earnings than regular savings and Certificate accounts
  • Federal insurance up to $250,000 backed by NCUA
  • Flexible, favorable terms

High-yield certificates are a risk-free investing option that could be a great product for those who want to protect their savings from being eroded by inflation but don’t want to deal with the fluctuations of the equity market. 

For a greater return, we advise laddering certificates. Laddering is a strategy that helps you capitalize on rate changes. With this strategy, you divide your money among several certificates, each with an increasingly longer term.

Laddering certificates makes funds available when you need them and maximizes earnings with each deposit. 

How to Choose the Right High-Yield Certificate

When choosing a high-yield certificate, there are several factors to consider. First, consider term length. Do you want a short-term investment or a longer commitment? 

Ensure the term aligns with your personal financial goals and how long you can wait for the return on this investment. Also, consider the rate available. Part of this should be defining what your short-term and long-term financial goals are. 

Like most financial products, the rate can vary with each financial institution. Getting the best interest rate will ensure you get the best return on your investment. This part should also include reading the fine print and understanding any fees or conditions.

Do You Want to Unlock Your Savings Potential? Open a High-Yield Certificate Account to Maximize Your Savings Today!

High-yield certificates are financial products that could help make the most of your savings through risk-free investing, guaranteed returns, and higher yields than traditional savings or certificate accounts. Do you want to reach your financial goals faster and watch your savings grow? Open a high-yield certificate account to get started!
Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or visit our Contact Us page for more information about opening an account.