How do Certificate Accounts (CDs) work?

If you’re looking to grow your savings more than a traditional savings account, a certificate is a great way to earn more. A is a low-risk savings account that gets you a guaranteed return for steady growth you can count on.

Here’s how a certificate works:

When you open a certificate, you set your money aside for a certain time commitment, or term – which you can choose based on your goals.
In return, you lock in an interest rate for that term that’s typically higher than regular savings accounts, helping you reach your goals sooner. Especially since you earn compound interest – which is interest on your original deposit and on the interest you gain over the term! Plus, each Summit Certificate is a safe investment option with your money being insured up to $250,000.
These fixed interest earnings make it easy for you to know exactly how much you’ll earn over the length of the term. You don't have to worry about market ups and downs (like with stocks), so you can feel secure about your savings growth.

Because certificates lock in your interest rate for a set term, they’re designed to keep your money growing without interruption. So, while you can withdraw money if you really needed to before the term's up, there may be a fee for taking it out early.

One of the perks at Summit Credit Union is there’s no early withdrawal fee if you’re pulling your money out to put funds toward a Summit Individual Retirement Account (IRA) or Summit Mortgage. It’s another way we support you in reaching your goals!

What happens at the end of the certificate term?

Once your certificate reaches the end of its term, also known as its maturity date, you have options to choose from. Typically, there’s a grace period, or certain amount of days after your maturity date (at Summit it's a 10-day grace period), which gives you extra time to choose if you want to:

Renew your certificate at the same term to keep your money growing for your goals
Choose a new rate and term for your certificate, if your goals or needs have changed
Transfer the balance – for example, to another Summit account to cover other needs

It’s easy to manage what you want to do with your certificate, either before your maturity date or during your 10-day grace period after maturity, through ! If you don’t take an action, we'll automatically renew your Summit Certificate. This will be at the same term you had before to continue growing your money. If you have a Certificate Special, it will auto-renew at a comparable standard, or non-special, term and standard rate for that term.

How do I choose the right certificate?

Choosing the right certificate account for you depends on what your savings goal is – or more accurately, when you want to achieve that goal. The term you pick for your certificate is important because you'll want to make sure it aligns with your goals.

For example, if you’re planning on saving for your wedding next year, pick a term under 12 months. It will mature before your wedding, and you can have the funds ready when you need to pay for things.

Or maybe you want to save for retirement years away. The longest term available, like a 60-month certificate, means you’ll lock in a great rate, guaranteed growth and predictable earnings for years in the future.

How do I know what certificates I can get?

At Summit, all members can open a certificate! If you’re not a member, it’s easy to open a certificate and become a member at the same time. You just need to meet the minimum balance requirement, but this starts as little as $250. Plus, there are four different types of certificates Summit offers for secure savings options:

Regular Certificate – Your where you lock in a term, rate and deposit amount up front. Terms range from three months to five years typically, making it a smart choice for most savings goals!

Certificate Special – This is a limited-time special where you can get an even better rate than a Regular Certificate, but they work the same. When the term is up, and if you want to renew, it typically would be at a Regular Certificate option but you can check in digital banking or contact us to see if there are any current specials available!

Certificate Plus – You can add more money to a throughout the term, up to $10,000. This gives you flexibility to earn a great rate on new money you save up. A Certificate Plus is a solid choice if you’re saving toward a set goal and want to make more deposits without having to open a new one. It gives your savings an added boost to grow even more!

IRA Certificate – You get the better rate of a certificate combined with the tax advantages of an IRA – you don’t have to pay taxes on any interest earned until you withdraw the funds. This choice makes sense if you are saving for retirement. And you can choose any Summit Certificate to be an IRA Certificate!

If you have any questions about which Summit Certificate is right for you, just with us – we’re happy to help!

Have your savings goal in mind and ready to start earning more? View our available and find the best option for your goals! Then you can easily or by visiting your .