*Annual Percentage Yield (APY). The APY and dividend rates are effective as of 10/25/2022 and may change at any time without notice. A minimum deposit of $250.00 is required to open and earn APY. The APY for all Share Certificates assumes the dividend will remain in the account until maturity. Withdrawal of dividends prior to maturity will reduce earnings. A penalty will be imposed for the withdrawal of the principal before maturity. 16-Month Share Certificate: the rate will increase by .25% on October 1, 2022, January 1, 2023, April 1, 2023, and July 1, 2023. During the term of this Share Certificate, the APY will not exceed 2.25%. At maturity, this Share Certificate will renew at the same term but will be at a fixed rate unless you inform us otherwise. The fixed-rate will be the prevailing rate at the time of maturity. Direct may cancel this promotion at any time.
Jumbo rates apply for deposits of $100,000 or more.
** New Money Only. Rate Match Guarantee requires the Financial Institution be a federally insured bank or credit union with a location in Massachusetts.
What is a Share Certificate / Certificate of Deposit / CD?
Say you’re setting aside money every month and looking at options for earning interest on those savings. A typical savings account might be the most obvious option, but certificates of deposit, or CDs, are a type of savings account you may not be as familiar. However, CDs are considered to be one of the safest options for saving money and are likely to have higher interest rates than your regular savings account. In short, they’re worth considering. (Credit Unions have Share Certificates while Banks call them Certificates of Deposit)
The U.S. Securities and Exchange Commission (SEC) defines a CD as a saving account that holds a fixed amount of money for a fixed period of time. This time period can range from six months to five years or more. When you redeem your CD, you will receive your initial investment plus any interest earned during the fixed period.
One benefit of CDs is that there are multiple types available that can be tailored depending on your financial goals and needs. Direct Federal CDs even roll into the same term when they mature, allowing you to continue earning interest without needing to contact us!
Have additional questions about what a Share Certificate/Certificate of Deposit is?