If you’re looking for a predictable place to park your money for a specific period and want to earn more than what is offered by your savings account, an investment in certificates might be an excellent choice. 

Here are some advantages to investing in certificates: 

Safety - Certificates from federally insured banks and credit unions (like U.S. Eagle) are backed by the full faith and credit of the U.S. Government up to $250,000. It amounts to bank-subsidized investment insurance and is a major benefit to investors like you.

Better returns than savings deposits - With a certificate, you can’t take your money back at a moment’s notice like a savings account. As a result, banks and credit unions pay a higher yield on your certificate deposits in exchange for locking up your money for a set amount of time. One way you can increase your flexibility and return is to create a Certificate Ladder made up of certificates of differing maturities, so portions of your savings will be available at regular intervals. For instance, U.S. Eagle’s five-year certificate ladder is structured such that a certificate matures each year for five years, or rolls over into another certificate. 

Wide selection of terms - Certificates are available in an assortment of maturities and yields. U.S. Eagle offers certificates ranging from three months to five years, enabling you to find the best option to fit your needs. Shopping for the best combination of rates and terms is always smart.

Fixed, predictable returns – Unlike other types of deposit and savings accounts, certificates deliver a specific yield at a specific time.  Even if interest rates fall significantly in the broader economy, your rate remains constant for the term of the certificate. 

If you are still unsure about which investment approach is best for you, you can get free information and guidance from our Financial Wellness Center.