What is a Share Certificate?

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Do you have some money to invest but don’t know where to begin? A Share Certificate can be a great entry point for those looking to build their investments.

Share Certificates are federally insured and offer investors safety, stability, and higher returns than other investment options.

Let's dive into what a Share Certificate is and how it can be a great first start for someone new to investing.

What is a Share Certificate?

A Share Certificate is a type of savings account that allows you to earn higher amounts of interest in return for keeping your money in the account for a prescribed amount of time.

Share Certificates are offered by credit unions, which are member-owned financial institutions. These certificates typically come with low minimum deposits and no monthly fees. Some credit unions also offer higher rates of return on Share Certificates than traditional banks do with CDs, short for certificates of deposit.

Is Your Money Safe in a Share Certificate?

One huge benefit of putting your money in Share Certificates is that they are federally insured up to $250,000 through the National Credit Union Administration (NCUA). This means that the money in your account is safe in the unlikely event the credit union fails or goes bankrupt. It also means that you won't have to worry about losing your money or returns, which is a very real risk with traditional investing, such as with stocks, bonds, and crypto.

Additionally, any interest earned on an IRA (Individual Retirement Account) Share Certificate will not be taxed until you withdraw it. This makes an IRA Share Certificate an attractive option for those looking for tax benefits.*

Share Certificates can be an excellent way for investors who are new to investing or who have limited capital available. With federal insurance up to $250,000 and no monthly fees, these accounts offer both security and convenience for those looking for better returns on their money. If you're considering investing in the stock market but aren't sure where to begin, consider opening a Share Certificate with Hanscom Federal Credit Union today

* This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax advice. Please consult tax professionals for specific information regarding your individual situation.

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Hanscom Federal Credit Union
Hanscom Federal Credit Union

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