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News & Tips

The Advantages of Opening a Certificate of Deposit

March 8, 2018 by Space Coast Credit Union

Certificates of deposit, also known as CDs, can play an important role in your savings strategy, perhaps as you’re saving money for a down payment on a car or house, or for future college expenses. To help you plan your customized savings strategy, here are answers to frequently asked questions on the subject, which include three crucial certificate of deposit benefits.

What is a Certificate of Deposit?

When you open one, you are agreeing to deposit money into an account with a fixed interest rate for an agreed-upon length of time. There are minimum deposit requirements and fixed maturity dates, although the funds can typically continue to be rolled over for another term; in these instances, the current interest rate takes effect, which may or may not be the same as the one you originally received. Interest rates tend to increase as the fixed term you choose goes up in length of time.
For example, at SCCU, certificates of deposit are available for these numbers of months: 6, 12, 18, 24, 30, 36, 42, 48, 54, and 60. You can view our current rates here

What Are Three Key Certificate of Deposit Benefits?

First, your funds are federally insured by the National Credit Union Fund (NCUF) for up to $250,000 per share owner per insured credit union for each account ownership category. This means that with certificates of deposits that fit within the insurance limits, you can never lose your principal investment, which makes them a less risky choice than stocks and bonds. 
Next, certificates of deposits typically pay more in interest than your typical checking, savings or money market accounts. Another piece of good news: The certificate of deposit interest rates at SCCU went up in January 2018!
As a third benefit, certificates of deposits are still fairly flexible. If, for example, you know you’ll need to spend funds in six months’ time, you can choose the six-month CD option and still benefit from the interest you’ll receive.

Extra Certificate of Deposit Advantages at SCCU

At SCCU, bonus rates are available based on your Member Rewards level, and all certificate of deposit accounts also offer multiple free benefits, including online and mobile banking with online statements. There is also free telephone banking available, 24/7/365. Free account alerts are provided to help you conveniently manage your accounts—and SCCU provides easy access to account information in person as well as over the phone.
There is a $500 minimum average daily balance needed to earn APY, and the certificate of deposit must be fully funded when you open the account. Here is more information about the benefits of opening your certificates of deposit at SCCU.
If you’d like to talk about which savings strategy is right for your needs, please call the office nearest you:
  • Brevard: 321-752-2222 
  • Broward: 954-704-5000 
  • Miami-Dade: 305-882-5000 
  • All Other Areas: 800-447-7228
We look forward to serving you!
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