Frequently Asked Share Certificate Questions
Q: What is a Share Certificate?
A: Financial Institutions sell certificates of deposit to members to raise funds to make new loans to others. When you buy a Share Certificate, you agree to deposit a fixed amount of your savings for a fixed period in exchange for an agreed-upon interest rate.
In general, you deposit an amount that is equal to the face value of the Share Certificate. For example, if you buy a $1,000 Share Certificate, you pay $1,000 for it.
Q: What happens at the end of the term?
A: That depends on whether you've selected a compounding or non-compounding certificate. If you selected a compounding Share Certificate the institution repays your original deposit plus accrued interest, unless you choose to roll over the Share Certificate for another deposit term. In that case, you're likely to receive only accrued interest.
If you have not selected compounding, you will have already received your dividends, and will then receive your original deposit back.
If you don't notify the institution by the Share Certificate's maturity date, it will automatically roll over the Share Certificate for another identical deposit term at the current interest rate.
Q: How is my investment insured?
A: Funds on deposit at EFCU are federally insured by the National Credit Union Administration (NCUA) to at least $100,000.
Q: How are the rates calculated?
A: Share Certificates are advertised with an interest rate and APY - also called the annual percentage yield. APY is a higher interest rate than the stated rate because you are earning more on your certificate by letting the interest compound.
The above information should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax adviser.
View our current rates on all Share Certificates products.