Share Certificates 101

Posted by Jeremy Wascak July 01, 2019

A share certificate is a type of savings account that has a fixed dividend (or interest) usually higher than a regular savings account. Share certificates also have a maturity date, or a predetermined length of time where funds are not accessible. If the funds are removed before the certificate reaches its maturity date, an interest penalty fee may apply. A share certificate is very similar to a bank's certificate of deposit (CD). 

The term share certificate comes from credit unions' long history of being Member-owned. Because credit unions don't have actual shareholders, our Members are considered our shareholders. Any type of savings account at Towpath Credit Union is like a share of the company. 

Upon opening a share certificate at Towpath CU, you will select what will happen to your funds when the certificate reaches maturity (like renewing for another term or depositing funds into a savings account). At the end of the share certificate term, Towpath CU will send a letter notifying you of the term end date and give you the option to choose a different action for where your funds will go. 

At Towpath Credit Union, the minimum deposit for a share certificate is $500 with terms ranging from 12 months to 5 years. Visit our Deposit Rates page for the most current rates available.