When researching Savings options, you may have come across two similar products offered by Banks and Credit Unions: Certificates of Deposit (CDs) and Certificates. Both CDs and Share Certificates offer short and long-term solutions to saving your money. They have similar terms and are considered to be a safe way to help your money grow over a fixed period of time.
CD VS. CERTIFICATES: SIMILARITIES
- Both offer a solution to making the most of your money
- Both have similar terms
- Both are considered to be safe options for your money
CD VS. CERTIFICATE: DIFFERENCES
CDs and Certificates really only have one distinction between them:
- Certificates are offered by credit unions
- CDs are offered by banks
At Credit Unions, like Direct, you earn dividends on your money. At a bank, you earn interest. However, to make it less confusing for members, Direct uses the two terms interchangeably. In practice, credit unions also use the term Share Certificates.