Are Share Certificate rates fixed?

Share Certificates can indeed offer both fixed and variable rates, depending on the terms and options provided by the specific credit union or financial institution. Here’s a brief overview of both:

• • Fixed-Rate Share Certificates: These certificates offer a stable, unchanging interest rate for the entire term of the certificate. With a fixed-rate Share Certificate, you know exactly how much interest you’ll earn over the duration of the certificate because the rate remains constant. This option is ideal for those who prefer a predictable return on their savings.
  • Variable-Rate Share Certificates: In contrast, variable-rate Share Certificates come with interest rates that can change during the certificate’s term. The rate is often tied to a specific financial index or benchmark, which means it can go up or down based on market conditions. While this option may offer the potential for higher returns, it also carries more uncertainty.

So, in summary, Share Certificates can indeed have both fixed and variable rates, and the choice between the two depends on your financial goals and risk tolerance. It’s important to carefully review the terms and conditions offered by your credit union to determine which type of Share Certificate aligns with your needs and preferences.