Typically, you will find that rates increase with the term length, offering options from short-term 6-month certificates to long-term 60-month products. Accessing your funds before the maturity date usually results in a penalty that forfeits a portion of the interest earned, and in some cases, may even dip into the principal amount.
Understanding Summit Federal Credit Union CD Rates Flexibility and Early Withdrawal Penalties
By choosing a credit union, you are likely securing a better return on your savings and a more transparent relationship with your financial institution. Funds held in certificates of deposit are insured by the National Credit Union Administration (NCUA) up to $250,000 per depositor, per insured credit union, for each account ownership category.
Mid-range terms (12-36 months): Balance between accessibility and growth. Liquidity and Penalties Before opening a Summit Federal Credit Union CD, it is crucial to understand the penalties associated with early withdrawal.
Understanding Summit Federal Credit Union CD Rates Flexibility and Early Withdrawal Penalties
Unlike a simple interest rate, the APY takes into account the effect of compounding interest, giving you a true picture of your earning potential. Longer terms (36-60 months): Maximize yield by committing funds for the long haul.
More About Summit federal credit union cd rates
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