Share Certificates

What is the difference between Compounding and Non-Compounding?

When exploring Share Certificates, you can choose how you want to receive your dividends. Do you want your dividends to be invested right back into the certificate, or will you need to access them right away?

Non-Compounding	Compounding
Ideal for members who want to invest but need access to cash throughout the certificate term.	Ideal for members who want to invest and have their dividends go right back into the certificate and keep earning dividends.
Either once a month or once per quarter, the dividends you earn are removed from the certificate and deposited into your primary savings account. You will continue to earn dividends on the original amount of your certificate, but you won’t earn dividends on the dividends.	Either once a month or once per quarter, the dividends you earn are added to the principal— or total amount—of your certificate. You won’t be able to withdraw the earnings from your certificate, but your money will keep growing as your certificate matures, and you’ll be earning dividends on the dividends!
When it’s right for you: If you need to use your certificate’s earnings for living expenses, a certificate with non-compounding interest allows you to receive dividends periodically.	When it’s right for you: If you don’t need access to the earnings until your certificate’s term is complete, your dividends will work even harder for you with compounding interest.

What if my certificate’s APY goes up and I’m locked in at a lower rate?

You can save worry-free with our Member’s Choice Certificates, which offer you the potential to earn higher dividends during your certificate’s term. You can lock in a new rate any time after the first 90 days, and then once every 365 days thereafter. So if rates rise, your earnings can too.

If you have questions about Share Certificates, give us a call and we’ll walk you through your options. We can even assist you with a Laddering Strategy that may help you earn even more.

Must be eligible for membership and open a share saving account in order to join RFCU and obtain a share certificate. Minimum balance of $5.00 is required to open and be maintained in share savings account. Fees and other restrictions may apply. Fees and other conditions could reduce earnings on account. A penalty will be imposed for early withdrawal of principal prior to maturity.

Rates, terms, and conditions are subject to change at any time.

Non-compounding share certificate option will have dividends credited to the primary share account. Dividends cannot remain on a non-compounding share certificate. The payout of dividends is mandatory.

Member’s Choice Certificates:
After 90 days from the certificate opening date, members have the option to request to change the dividend rate to the current dividend rate applicable to the term for their certificate. Future rate changes may be requested every 365 days after the last rate change on their account. Rate change must be initiated by the member, either in writing or by phone. Option to open multiple Member's Choice Certificates is available. Member's Choice Certificates are not available as jumbo certificates.

MemberPlus! Certificates
To qualify for the MemberPlus! dividend rates and annual percentage yields, members must have and maintain an active checking account. If members do not meet the MemberPlus! qualifications, they will receive the regular share certificate dividend rates and annual percentage yields. If members qualify for the MemberPlus! dividend rates and annual percentage yields, they will receive the MemberPlus! rates. Once the rates are applied to the certificate, the MemberPlus! dividend rates and annual percentage yields will be in effect for the term of the account unless they request a rate change. If they request a rate change, they must continue to meet the MemberPlus! qualifications in order to obtain the MemberPlus! rates for the rate change request.

Must have online banking username and PIN/password to open share certificate online.

Advertised Jumbo MemberPlus! Share Certificate annual percentage yield (APY) is accurate as of . The minimum balance required to open the Jumbo Certificate or MemberPlus Jumbo Certificate is $100,000. You must maintain these minimum balances at all times to earn the disclosed annual percentage yields (APY). Once a share certificate is opened, the dividend rate and annual percentage yield will be in effect for the term of the account.

For non-compounding share certificates and non-compounding MemberPlus! share certificates, no dividends are added to the share certificate but are transferred to a designated share account. Dividends cannot remain on a non-compounding share certificate. Payout of dividends is mandatory.

To qualify for the MemberPlus! dividend rates and annual percentage yields, members must have and maintain an active checking account. Members who qualify for MemberPlus! dividend rates and annual percentage yields will receive the MemberPlus! rates. Once applied to the certificate, the MemberPlus! dividend rates and annual percentage yields will be in effect for the term of the account for fixed rate accounts. Members who do not meet these qualifications will receive the regular dividend rate.

A substantial penalty will be imposed for the early withdrawal of certificate principal prior to maturity date. A withdrawal could reduce earnings.

Rates and terms subject to change without notice. Fees and other conditions could reduce earnings on the account.