A lot of people assume a certificate of deposit is something for other people. For someone with a financial advisor, or a spare fifty thousand dollars, or a working knowledge of what "compounding" means.

It isn't. A certificate is one of the simplest products a credit union offers. There's no minimum to open one at True North, and once it's open there's nothing to manage. Here's how it actually works.

What is a certificate of deposit?

A certificate of deposit is a savings account with a deadline. You agree to leave a set amount of money untouched for a set length of time, and in exchange you earn a higher rate than a regular savings account pays. When the term ends, you get your money back plus everything it earned.

You may also hear it called a share certificate. At a credit union, that's the same thing.

Do I need a lot of money to open one?

No. There's no minimum deposit to open a certificate at True North. If you have a few hundred dollars sitting in savings that you know you won't need for a while, that's enough. The rate you earn is the same whether you deposit five hundred dollars or fifty thousand.

Are certificates only for people who are good with money?

No — and in some ways it's the opposite. A certificate asks nothing of you after you open it. Nothing to monitor, nothing to rebalance, no market to watch. You pick a length, deposit the money, and leave it alone. It's one of the few financial products where doing nothing is the correct strategy.

How is a certificate different from a savings account?

A savings account lets you withdraw anytime, and the rate can change whenever the credit union changes it. A certificate does the opposite: the money stays put until the term ends, and the rate is locked in from the day you open it. Less flexibility, more earnings, no surprises.

How much more can a certificate actually earn?

Here's the same money in a regular savings account and in a 25-month certificate, over the same 25 months.

Roughly forty times more, on the same money, with the same federal insurance behind it.

Notice the smallest row. A thousand dollars isn't a fortune, yet it still earns ninety-one dollars for doing nothing but sitting still. That's the part most people get wrong about certificates—they assume the product only makes sense at large balances, when really it just scales. Remember what Sammy the Savings Sloth says: savings takes time, and this will build up faster than your regular savings account.

Table figures are illustrative. They assume a 25-month certificate at 4.25% Annual Percentage Yield (APY) and a regular savings account at 0.10% APY, with principal and dividends remaining on deposit for the full term. Rates vary by term, some rates require funds not already on deposit with True North, and rates are subject to change. See current rates and full terms on our rates page.

Is my money at risk?

No. A certificate is not an investment. It doesn't rise and fall with the stock market, and the rate you're quoted when you open it is the rate you get. Your funds are federally insured by NCUA up to the standard coverage limits, exactly like your regular savings account.

What if I need my money before the term ends?

You can withdraw early, but there may be an early withdrawal penalty — a set number of days' dividends, based on how long your certificate runs. Longer terms carry a larger penalty. If you're unsure how long you can leave the money alone, choose a shorter term, or split your savings across several.

What happens when my certificate matures?

Certificate accounts are automatically renewable accounts. At maturity you have seven days to decide what happens next: withdraw the money, move it to savings, or open a new certificate at whatever rate is current then. Someone here will walk you through the options.

What is a certificate ladder?

Instead of putting everything into one certificate, you split it across several of different lengths — a short one, a medium one, a long one. As each matures, that portion becomes available to you again. You're never far from having cash on hand, and the rest of the money keeps earning.

How do I open a certificate?

Certificates are opened with a person, not a form. If you're already a member, call our Member Contact Center at (907) 523-4700. If you're not a member yet, you can join online first, then call to set up the certificate. The whole thing takes about fifteen minutes.

If you've read this far and you're still not sure a certificate is for you, here's the short version: money you won't touch for a year or two is money that could be earning more than it is right now. That's the entire idea. You don't need to be wealthy, and you don't need to be an expert — you just need some savings you can leave alone for a while.

See current certificate rates | Call (907) 523-4700