Is a certificate account worth it?

Depending on your needs, yes—certificate accounts can be a worthwhile place to put at least some of your money. Certificate accounts are a popular savings option because they provide three key benefits:

• Your money is safe. Funds in a credit union certificate account are federally insured by the National Credit Union Administration (NCUA) up to $250,000². It's a low-risk savings vehicle.
• Your money has a guaranteed rate of return. Credit union certificate accounts let you lock in a guaranteed dividend rate for the term you choose. There’s low risk involved, and your savings are certain to grow over time.
• You control access to your money. While funds in a certificate account aren’t liquid, you can control the term length. If you think you’ll need access to funds in a month, choose a 30-day certificate. If you want to put money away and not worry about it for a while, choose a longer term, up to 60 months.

Can you earn money with a certificate account?

Yes, because you’re guaranteed a certain rate of return on your certificate.

What is the difference between APR (Annual Percentage Rate) and APY (Annual Percentage Yield)?

APR, which stands for Annual Percentage Rate, is the interest rate on an account plus any fees you'll have to pay. It's calculated on either a monthly or annual basis and shown as a percentage. APY, which stands for Annual Percentage Yield, is the rate you can earn on an account over a year.

What account type is best for savings?

Affinity offers a variety of account types to help members save, because no single option is best for every situation. For example, our SmartStart Savings account is exactly that – a smart way to start saving – because you'll get higher APY (annual percentage yield) on your first $5,000. Other accounts, such as MoreSavings, offer higher rates for higher balances, and our Certificates may provide higher yields for those willing to lock up funds for a period of time. We also offer IRA savings accounts, Coverdell Education Savings Accounts (ESAs) and Health Savings Accounts (HSAs).