Best Answer: If you have funds you are able to commit for a specific period of time, you can enjoy higher yield with the preferred rates our Share Certificate of Deposits offer.
Terms: Your community credit union offers Share Certificates for 3, 6, 12, 18 or 24 months. At the time of account opening, you may instruct the credit union to transfer principal and dividend earned to another account, or to liquidate the certificate at maturity. Unless otherwise instructed, Share Certificates may automatically renew at maturity into a new certificate for the same term at the current rate offered for that term. Your credit union will mail a notice as a reminder of the maturity date 30 days prior to maturity. Once the share certificate account is opened, you have 10 days to withdraw or close the account without penalty. After 10 days from account opening, no additional deposits may be added and no partial withdrawals can be made without penalty.
Minimum Deposit: The minimum deposit required to open a share certificate account is $500.00. Certificates may be opened for any amount greater than the minimum to open. $50,000.00 and $100,000.00 Share
Certificates are also available at higher dividend rates.
Dividend Rates: The dividend rate is fixed for the term selected at account opening and will not fluctuate. Community First FCU rates are based on general market conditions and are monitored or adjusted monthly. Dividends are paid at maturity.
Borrowing Privileges: Members with share certificates may borrow from the credit union at special loan rates by using their share certificate as collateral or security. Once used as collateral, the share certificate cannot be liquidated until the loan has been fully satisfied.
Early Withdrawals. Share certificates may be redeemed prior to maturity (unless used as a loan collateral). However, redemptions after 10 days from account opening and prior to maturity date are subject to the following penalties:
For certificates with maturities less than 12 months, the penalty is equivalent to 30 days of dividend yield at the dividend rate booked.
For certificates with maturities of 12 months or more, the penalty is equivalent to 90 days of dividend yield at the dividend rate booked. This is one example I found for you and is an excellent one to get a basic idea from.