When you purchase a Share Certificate, you invest a fixed sum of money for a fixed period of time (or term) – 6 months, 1 year, 2 years, or more. In exchange, we pay you dividends, typically at regular intervals or at the end of the Share Certificate's term. When the certificate matures you can cash it in or redeem it. At that time you receive the money you originally invested plus any accrued dividends. But if you redeem your Share Certificate before it matures, you may have to pay an early withdrawal penalty or forfeit a portion of the dividends you earned. At maturity, you also have the option to roll your certificate over to another certificate (for another 6 months, 1 year, 2 years, etc.). 

At MVFCU the minimum amount to need to purchase a Share Certificate is $400. With $400 you can purchase a 6 month, 1 year, 2 year, 3 year, 4 year, or 5 year certificate. Each term generally has a different interest rate and the rate may change depending on the amount of money you put in. Traditionally if you put $400 in a 5 year Share Certificate you will earn interest at a higher rate than a 6 month Share Certificate. The 6 month Share Certificate pays out dividends when is matures. The 1 through 5 year certificates pay dividends each quarter, which means you will earn dividends on your dividends (also known as compounding interest). Be sure you check the Share Certificate dividend rates before you make your decision.

Have more questions? Ready to purchase a Share Certificate?
Call us at (907) 745-4891, (907) 694-4891, or (808) 677-6206 or come in to one of our community offices.