Share Certificates
Share Certificates
A Share Certificate is a great option if you want to earn additional interest while not needing immediate access to the funds. A Share Certificate is a savings certificate with a fixed maturity date that earns interest at a fixed rate It can be issued in any denomination, with a minimum investment of $1,000. The interest rate is generally higher than a regular share (savings) account, because the money cannot be withdrawn until the maturity date, or a penalty will apply.
Automatic Renewal: All of our Share Certificates automatically renew, which means you don't need to contact the Credit Union each time a certificate of deposit is about to mature. The certificate(s) will renew for the same term it was originally issued for. For example, if you have a 12-month certificate of deposit, it will automatically renew for another 12 months upon maturity. The renewal rate will be the current rate at the time of renewal, so if interest rates have increased since your initial certificate, your rate will also increase! If you need the certificate funds and prefer not to renew, just let us know. We encourage you to reach out to us prior to the renewal date; however, if necessary, you have a grace period of 10 days following the renewal date.
Early withdrawal penalty: A substantial penalty is imposed for withdrawals before maturity date. Share certificate terms of less then one year; the penalty is 180 days dividends, whether paid or not. Share certificate terms of one year or more; the early withdrawal penalty is 365 days dividends, whether paid or not. The penalty doesn't apply to early withdrawals due to death of any owner.
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IRA Certificates
IRA Certificates
Funds in an Individual Retirement Account (IRA) can be invested in an IRA Certificate. To invest in an IRA Certificate, you need to have an IRA Share Account. The minimum required investment amount is $1,000. IRA Certificates of Deposit are available for terms of either 12 months or 24 months.
Automatic Renewal: Like our regular Share Certificates, our IRA Certificates automatically renew as well, which means you don't have to contact M-O FCU every time you have a certificate coming due. The certificate(s) will be renewed for the same term they were originally taken out for. For example, if you take out a 12 month certificate, upon maturity the certificate will renew for another 12 months. The rate of the renewed certificate will be whatever the rate is on the date of renewal, so if rates have gone up since you first took out the certificate, your certificate rate will go up too! If you need the funds in the certificate, however, and wish not to renew the certificate, just let us know. You can do this anytime before the certificate renews, or up to 10 days after the renewal date.
Click here to view our current rates.