In times like this, you want to be confident that the savings you set aside will be there when you need it. If you’re looking for a safe place to keep your savings for a set period of time, a savings certificate is a great solution. A certificate earns higher dividend rates than a regular savings account, which can help you reach your goals faster.
You might be surprised by how much you can earn when you let your account balance grow!
Put Your Savings to Work
When you open a savings certificate, you agree to keep your money on deposit for a set amount of time. Certificates are available in terms from three months to five years. In general, the longer you commit your funds, the better the rate you’ll earn. It’s important to choose a maturity date in line with your goals because there may be a penalty for early withdrawal.
When a certificate matures at the end of the term, there’s a grace period, usually about a week, when the funds can be withdrawn. After the grace period, certificates are automatically renewable, making reinvestment quick and easy.
Types of Certificates
Advancial’s lineup of certificates provides more ways to maximize your savings:
- Regular Certificate — start saving with a minimum of $1,000. Choose from a range of terms available, including 3, 6, 12 and 18 months, and 2, 3, 4 and 5 years.
- Junior Jumbo and Jumbo Certificates — earn higher annual percentage yield (APY) with a minimum balance requirement of $25,000 (Junior Jumbo) or $50,000 (Jumbo).
- Milestone Certificate — this add-on certificate has a low minimum of $100 and allows you to add funds to your certificate at your own pace. You’ll be rewarded with higher yields for each milestone you reach.
- Starter Certificate — these certificates for Money Musketeers® and Dinero Teens® offer low minimums and competitive rates for young savers who meet the age requirements.
- IRA Certificate — save for retirement with the protection of a certificate and the tax advantages of an individual retirement account (IRA).
Building a Certificate Ladder
You can buy a series of certificates with staggered maturities to have access to a portion of your funds at regular intervals. This strategy, called laddering, can help you take advantage of the best interest rates when rates are changing. If rates are falling, a portion of your money is still earning the higher rates that were available earlier. And if they’re rising, a portion of your money is available to reinvest at the higher rates at regular intervals.
To create a certificate ladder, open a series of certificates with different maturity dates. For example, if you have $4,000 to put into certificates, you might invest $1,000 each in six-month, 12-month, 18-month and two-year certificates. As each certificate matures, you have the option to use the money or reinvest it.
Take Advantage of the Benefits
When you’re ready to start saving, visit advancial.org to open a certificate online or call 800.322.2709 with questions.