Note: Annual percentage yields, or APYs, shown are as of Dec. Best 1-year share certificate rates Credit union nameĭepartment of Commerce Federal Credit Union The share certificates listed below earn rates that are more than four times the average one-year share certificate rate of 0.91%.
CNET’s picks for the best 1-year share certificate rates This means that once the maturity date has passed, the term will reset itself unless you withdraw the money or modify the certificate during its grace period, which is typically seven days. Like bank CDs, a share certificate can be set to renew automatically. In most cases, if any money is withdrawn before the maturity date has passed, the credit union will impose an early withdrawal fee equivalent to between 90 and 365 days of forfeited dividends. What is a 1-year share certificate?Ī one-year share certificate, like a one-year CD, is a savings account available at a credit union that’s designed to hold a lump sum of cash that’s not to be withdrawn for an entire year.
What’s more, each credit union member is insured by the National Credit Union Association for up to $250,000 per person. Credit unions call it a share certificate.Ĭredit unions offer share certificates with rates comparable to those at online banks.
And, like banks, credit unions offer higher, competitive annual percentage yields, or APYs, to account holders as an incentive for not withdrawing the funds until the maturity date of the account, be it from a few months to five years.īanks call this type of account a certificate of deposit, or CD. Like banks, credit unions offer a special type of savings account where account holders can deposit a lump sum of money for a specified length of time, untouched, as it accrues interest.
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