Share Certificates

With certificate of deposit (CD) accounts, money is saved for a fixed amount of time, called a term. In exchange for leaving your money in the account until the term ends, you earn a fixed interest rate, which is typically higher than the variable rates offered by savings accounts.

How much interest you earn on your URW Certificate depends on the amount you deposit, the term you choose and your fixed interest rate. Check out our rates.

No, unlike traditional savings accounts that can be deposited into at any time, Certificates are funded just once.

Toward the end of the term of your Certificate, you’ll receive a maturity notice with details about your options. You’ll be able to:

• Withdraw your money and put it in another account.
• Automatically allow your Certificate to renew for the same term at the current rate.

You can withdraw your principal balance at any time, but Certificates have a penalty for early withdrawal. You may withdraw the dividends you earn at any time without a penalty.

1) Amount of Penalty. The amount of the penalty is 180 days’ dividends on the amount withdrawn.

2) How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned at the dividend rate on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividends have already been paid, the penalty will be deducted from the principal.

3) Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: when an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction. Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment or where the account is an IRA and the owner attains age 59½ or becomes disabled and begins making periodic withdrawals.

Certificates of Deposit are mainly offered by banks, whereas Share Certificates (or Certificate Accounts) are offered by federal credit unions. Another difference is that while Certificates of Deposits earn interest, Share Certificates earn dividends. Lastly is the insurance tied to each of these types of savings; a Certificate of Deposit from a bank is insured by the Federal Deposit Insurance Company (FDIC), while a Share Certificate from a federal credit union is insured by the National Credit Union Administration (NCUA).

“Laddering” is a strategy of opening multiple certificates, each with a different length of term. Then, as each Certificate matures, you reinvest the proceeds in a new Certificate with a longer term.