Can someone explain savings certificates to me?

Here are the rates on my credit unions site. I just don%26#039;t understand what they mean.

3-month certificate 4.35%

6-month certificate 5.05%

12-month certificate 5.20%

24-month certificate 5.25%

36-month certificate 5.35%

60-month certificate 5.45%

I would like to put in about 5000 dollars but am not sure what kinda return I get.

Can someone explain savings certificates to me?

The rates shown indicate how much interest you will be paid ( annualized) if you invest for specific periods of time. The longer the term the higher the rate. However, the money is tied up for the time you choose and you have to wait till maturity to be able to access your funds. There are cashable certificates which will pay a lower rate but will not penalize you for withdrawing early if you are unsure of your plans for the money. To determine how much you would get on a simple interest basis, multiply your 5,000 by the rate ( 5000 X 4.35%= 217.50 ) divide the annual amount 217.50 by 12 months= 18.13 and multiply by 3 months- length of term =54.38. If you go into the credit union and ask an investment person, they should be able to answer any questions you have.

Can someone explain savings certificates to me?

The number of months you put your money into a certificate of deposit changes the amount of interest the bank pays you. The longer the money is in the bank the more useful it is to the bank for investments like mortgages or car loans.

Once you put your money in a certificate you cannot get it out until the certificate matures or pay a fee of 20% of the interest if the certificate was held to maturity.

Can someone explain savings certificates to me?

Thats decent but not great rates

Depends on how long you want to keep your $ tied up ( cant take it out before due date w/o a penalty)

If you can.. go with the 60 month

Look around first- I just got a few 13 week ones for 5.15%

Can someone explain savings certificates to me?

No you don%26#039;t want to go with the 60 month. That%26#039;s 5 years!! You don%26#039;t want to tie up your money for 5 years - the interest rate could go up and you%26#039;d be stuck with a lower interest rate. I%26#039;d go with 6-month or 12-month for right now.