Good reasons to invest in Certificate accounts

A Certificate account is is a type of savings account that has a fixed interest rate and a predetermined date when you can withdraw funds, known as a maturity date. They are ideal for people who don’t want to risk losing the original money they invested (also known as principal).

Like other savings accounts, Certificate accounts are federally-insured by the National Credit Union Association (NCUA) up to $250,000 and backed by the full faith and credit of the United States.

Here are three situations when Certificate accounts may be more attractive than other forms of savings and investment:

Take advantage of high interest rates

Certificate accounts are be a safe way to save money for your future, especially if they offer a higher interest rate and APY than a high-yield savings account or money market account. You are guaranteed a return on your money. Use our savings calculator to estimate how much you can save with a Certificate.

Invest during periods of market volatility

Nervous investors may find the Certificate account an attractive investment vehicle when the short-term outlook for the stock market is uncertain. Certificate accounts are insured up to regulatory limits by the National Credit Union Association (NCUA), so you can’t lose the money you initially put into a Certificate account, even if you withdraw early and have to pay a penalty.

Oregon State Credit Union Certificate accounts allow you to name a “Payable on Death” beneficiary. In the event of death, your beneficiary can redeem the Certificate account without penalty before the Certificate account matures.

Save money for future needs

Certificate accounts are ideal for people who anticipate making a large purchase in the near future. If you plan to buy a vehicle in a year or two or make a down payment on a house, and you know you’ll need the funds, putting that money in a 12- or 24-month Certificate account guarantees you’ll have the money when you need it, plus interest.

If you’ve tried saving money before but always end up spending it, investing in a Certificate account can lock-in your money and discourage you from using it knowing you’ll have to pay an early-withdrawal penalty.

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Regular and Individual Retirement Account (IRA) certificate account rates
Effective Date: Tuesday, May 28th, 2024
TermAPY for balances of $500 - $24,999APY for balances of $25,000 - $99,999APY for balances of $100,000 or more

Online certificate accounts 1

Online 9 month certificate
Dividend rate 4.64% 4.64% 4.64%
Annual Percentage Yield (APY) 4.75% 4.75% 4.75%
Online 18 month certificate
Dividend rate 4.74% 4.74% 4.74%
Annual Percentage Yield (APY) 4.85% 4.85% 4.85%

Standard certificate accounts 2

6-11 months
Dividend rate 4.35% 4.50% 4.64%
Annual Percentage Yield (APY) 4.45% 4.60% 4.75%
12-23 months
Dividend rate 4.45% 4.59% 4.74%
Annual Percentage Yield (APY) 4.55% 4.70% 4.85%
24-35 months
Dividend rate 3.92% 4.07% 4.21%
Annual Percentage Yield (APY) 4.00% 4.15% 4.30%
36-47 months
Dividend rate 3.63% 3.78% 3.92%
Annual Percentage Yield (APY) 3.70% 3.85% 4.00%
48-59 months
Dividend rate 3.15% 3.30% 3.44%
Annual Percentage Yield (APY) 3.20% 3.35% 3.50%
60 months
Dividend rate 3.25% 3.39% 3.54%
Annual Percentage Yield (APY) 3.30% 3.45% 3.60%

Online certificate accounts 1

Online Certificates only available through the credit union website for Members who do not have an existing account with the credit union. Online Certificates may be offered to Members with a pre-existing account in a branch or via phone. Member merits do not apply to online certificate products. IRA certificates, TLT Members, and Scottie Members are not eligible.

Standard certificate account disclosure 2

APY offer is good as of the effective date shown above the table. APY is accurate as of the last dividend date. Fees may reduce earnings on this account. See the early withdrawal penalty disclosure below.

The annual percentage yields shown above incorporate a 0.25% rate increase above the standard Certificate APYs.

  • Members in the Premier Member Merits category qualify for this 0.25% Certificate APY increase.
  • Members in the Enhanced Member Merits category qualify for a 0.15% Certificate APY increase.
  • Members in the Essential Member Merits category qualify for the standard Certificate dividend rates.
  • Premier, Enhanced and Essential are categories of the Member Merits program, a program that rewards members based on the member’s relationship with the credit union. See the Member Merits reward program page for details. The Member Merits reward program does not apply to business or organization accounts, but does apply to trust accounts.
  • The Member Merits rate increases are subject to change.

Each account holder agrees to the terms set forth on the Certificate Account Rates above and the Certificate Account Disclosure below and acknowledges they and the Truth in Savings Disclosure are part of the Membership and Account Agreement.

Certificate Account Disclosure (Online and Standard)

  1. Rate Information: The Dividend Rates and Annual Percentage Yields are based upon the balance ranges as set forth in the Certificate Account Rates chart. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the Dividend Rate and frequency of compounding for an annual period. The Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the Account.

  2. Compounding and Crediting: Dividends will be compounded daily and credited monthly. The Dividend Period begins on the first calendar day of the month and ends on the last calendar day of the month.

  3. Balance Information: The minimum balance required to open and maintain each account is $500. For Scottie and TLT certificates the minimum opening balance is $250. Dividends are calculated by the daily balance method which applies a daily periodic rate to the principal in the account each day.

  4. Accrual of Dividends: Dividends begin to accrue on cash and non-cash (i.e., checks) deposits on the business day you make the deposit to your account.

  5. Transaction Limitations: After your account is opened, you may not make additional deposits to your Certificate account, unless the account is an add-on Certificate. You may make additional deposits to your add-on Certificate’s principal balance after the account is open, until maturity. If your add-on Certificate rate is for new money only, any additional deposits must also be new money. You may make dividend withdrawals from all Certificate accounts. A withdrawal of dividends will reduce earnings.

  6. Maturity: Your account will mature within the term set forth at the time of opening your Certificate. For IRA Certificates, the minimum term is twelve (12) months.

  7. Early Withdrawal Penalty: We may impose a penalty if you withdraw any of the principal before the maturity date.

    • How the penalty works: If Certificate funds other than dividends are withdrawn prior to maturity, a penalty is imposed. The penalty assessed may reduce the remaining balance after the withdrawal. If the amount withdrawn reduces the balance below the minimum balance required, the Certificate will be canceled and the penalty will be taken from the entire principal balance.

    • Amount of penalty: The amount of the early withdrawal penalty is based on the term of your account. Term of 365 days or more = $25, plus 3% of the amount withdrawn. Term of 364 days or less = $25, plus 1% of the amount withdrawn. Earned dividends will not be subject to a penalty.

    • Exceptions to Early Withdrawal Penalties: We may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances:

      • i. When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.

      • ii. Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; or where the account is an IRA and the owner attains age 59 1/2 or becomes disabled.

  8. Renewal Policy: Your certificate account will automatically renew for another term upon maturity, at an interest rate offered for that certificate at the time of renewal. There is no grace period. Any changes to the certificate account after the maturity date will result in withdrawal penalties. You may not make additional deposits to a certificate account after it automatically renews to a non-promotional rate term at maturity.

    • The 5-month promotional add-on certificate and 8-month promotional certificate will automatically renew at maturity to a non-promotional 6-month certificate at an interest rate offered for that non-promotional certificate at the time of renewal.

    • The 15-month promotional certificate, including the 15-month promotional add-on certificate, will automatically renew to a non-promotional 12-month certificate at an interest rate offered for that non-promotional certificate at the time of renewal.

  9. Nontransferable/Nonnegotiable: Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union. The par value of a regular share in the Credit Union is $5.00.

  10. Automatic renewal: Members will receive a maturity notice shortly before the Certificate matures. The Certificate can automatically be renewed at the dividend rate in effect on the renewal date. Members will receive notices electronically when you register for estatements.

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