Share Certificates: A Great Way to Grow Savings Safely

Do you feel like you’re adulting at a particularly high level today? Maybe the universe is telling you it’s time to take a concrete step forward in building your savings. Whether you're just getting started or looking to diversify your portfolio, consider a high-yield share certificate: one of the best ways to grow savings safely.

What's a Certificate?

In a share certificate, you deposit an amount for a fixed-term savings arrangement; in return, it earns a guaranteed dividend rate. Think of a dividend rate as a yearly "thank you" the credit union pays you for keeping your money with us, expressed as earning an additional percentage of your balance.

This makes a share certificate function like a savings account, with the key differences being:

a. You will earn money on what you put in.

b. The money must stay in the account for a fixed term. The end of the fixed term is called the maturity date. More on that later.

How's it Work?

To start a share certificate, you choose a term you're comfortable locking away the money for. That length of time will be accompanied by corresponding higher savings rates, shown as an Annual Percentage Yield (APY)*. You leave the money in the account until the Share Certificate matures; in the meantime, it earns interest. For instance, at OnPath, our Promotional Share Certificate has an 11-month term and an APY of 4%*.

Key Benefits

So why would you do this instead of putting your money in a regular savings account or perhaps investing in the stock market? The benefit of a Share Certificate is:

a. Predictable returns on savings: You know that when you put your money into this account, it is earning a fixed rate the whole time, whereas markets can be volatile and can change based on a number of economic factors.

b. Safety: Your money in a share certificate is insured by the federal NCUA, making it a true guaranteed savings vehicle — you cannot lose it even if wildness occurs in the outside world.

Finally, many people see this kind of investment as a way to enforce savings discipline. They know the money is set aside and cannot be touched, so it helps them stay committed to their long-term goals.

Common Uses & Strategies

People often use share certificates to save for bigger goals they aim to hit within the next six to twenty-four months. These could include vacations or planned home projects. They could also use them for longer-term goals like college savings, a car down payment, or a big move.

Laddering is another big strategy for those who often utilize share certificates. In laddering, members can open multiple certificates with staggered maturities. This means that money remains accessible regularly while you have other accounts actively earning higher savings rates. Put simply, if one certificate is good, more certificates are…well, more good.

Who are Share Certificates Best For?

Savers looking to grow their savings beyond what a traditional savings account offers, without the risk of the stock market, will be drawn to share certificates. As a low-risk investment option, it's a good first step for new investors, offering a simpler, insured way to grow their savings.

As mentioned earlier, share certificates are also a great fit for someone with a specific savings goal and a timeline — but they require money you won't need to access before that term is up. It cannot be treated like an emergency savings account because there is a penalty for withdrawing funds before maturity. Think of it like a slow cooker: you get the best results if you just let it do its thing.

Open a Share Certificate at OnPath Today

Ready to earn more on your savings? Open a Share Certificate online, through the OnPath app, or at any branch location.

Already have more than $25,000 saved? Consider an Elite Money Market Account instead. Read here to learn more.

*Annual Percentage Yield (APY) is based on an investment as of 08/01/25. $1,000 Minium deposit required. Membership eligibility applies. Early withdrawal penalties apply and may reduce earnings. Fees could reduce earnings on the account. Limited-time offer. Other Certificate terms and rates are available. Other terms and conditions apply. Deposits are federally insured by the NCUA.