What is the difference between a CD and a share certificate?

A CD and a share certificate are essentially the same type of product, except that CDs are offered by banks and share certificates are offered by credit unions.

Are share certificates FDIC insured?

The FDIC insures banks, so share certificates are not FDIC-insured. However, they are still protected by the federal government through the NCUA up to $250,000 per depositor, per institution.

Is a share certificate a good investment?

Whether or not a share certificate is a good investment depends on your financial goals. If you’re looking for a safe place to keep short-term savings and earn a modest amount of interest, then a share certificate can be a great place to put your money.

Can you cash out a share certificate?

Yes. One of the benefits of a share certificate is that you can choose how long you want to keep your money on deposit, whether it’s just a few months or a few years. Once your account reaches maturity, you can cash out the balance. However, if you withdraw funds before the maturity date, you will likely pay an early withdrawal penalty.

Share certificates 101: Get the high yield of a CD, plus the benefits of belonging to a credit union