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Elevate Your Saving Game with Share Certificate Laddering!

Are your savings resting in an account, earning meager interest? It's time for a financial revolution. Discover the power of Share Certificate laddering—a game-changer for savvy investors. 

Understanding Share Certificate Basics
Commonly referred to as Certificate of Deposits (CDs) at banks, Share Certificates are straightforward investment tools. They offer fixed interest rates for durations spanning from three months to five years. Unlike traditional savings accounts, Share Certificates present an appealing alternative by providing higher interest rates.

Pros and Cons of Share Certificates 
Certificates offer a safe haven from market volatility, guaranteeing the rate and federal insurance up to $250,000. Plus, investing in a certificate will give you a higher rate of return than keeping your money in a typical savings account. 

However, they come with restrictions like withdrawal penalties and limited liquidity. For instance, if your emergency fund is invested in a Share Certificate, you face the dilemma of deciding whether to wait for the certificate to mature or incur the penalty for an early withdrawal.

Unlocking Flexibility and Earnings with Share Certificate Laddering
Withdrawing money prematurely from a Share Certificate incurs penalties, which makes concentrating all your available funds in a single certificate less advantageous. Share Certificate laddering, however, eases this problem.

With Share Certificate laddering, you would strategically divide your funds across multiple certificates with varying maturity dates. With a short-term approach, divide your funds into four equal parts and invest in certificates with maturities of three, six, nine, and twelve months. For a long-term approach, split your funds into five equal parts, each invested in certificates maturing annually for the next five years.

Building Your Share Certificate Ladder
You can customize your ladder based on your financial goals. As an example, with $2,500, you could create a long-term ladder like this:
$500 in a 1.0% Certificate for one year
$500 in a 1.5% Certificate for two years
$500 in a 2.0% Certificate for three years
$500 in a 2.5% Certificate for four years
$500 in a 3.0% Certificate for five years
With this example investment plan, you will have a certificate maturing each year for the next five years. For instance, if you start your Share Certificate ladder in 2024, your first certificate will mature in 2025. By adding another five-year certificate when that one matures, your ladder would reach into 2030. By consistently adding new five-year certificates as each one matures, your ladder can extend its reach into 2030.

This approach allows you to reinvest matured certificates at potentially higher rates, harnessing the benefits of compounding interest.

Check out our Share Certificate Rates:

7-Month
Special Certificate
Earn up to
4.00% APY^*1
(New money only)
_____________
 12-Month 
Smart Savers Certificate
Earn up to
3.15% APY²
(Unlimited additional deposits)
_____________
21-Month
Anniversary Certificate
4.65% APY³
(Offer ends December 31st)

If you have questions about Share Certificate laddering or any savings or investment products, visit a branch, give us a call, or contact us!

*APY = Annual Percentage Yield. Share Certificates use simple interest on a daily basis, which applies the daily periodic rate to the balance in the account each day. Dividends are paid monthly.

¹Special Certificate - For new money only. Funds must not currently be deposited with CommonWealth. This is a 7-month single term certificate and will NOT automatically renew at maturity. The funds will be transferred to your Regular Share Account at maturity and will earn dividends at the prevailing Regular Share dividend rate. Minimum Balance to open account and earn APY is $500. The maximum deposit limit is $250,000. After your certificate is opened you may not make additional deposits to the certificate. Share Certificates use simple interest on a daily basis, which applies the daily periodic rate to the balance in the account each day. Dividends are paid monthly. Limit one Special Share Certificate per member. Cannot be combined with any other Special Share Certificate.     

²Smart Saver 12-Month Certificate – Minimum balance to open account and earn APY is $500. After the account is opened, additional deposits of at least $100 can be made during the term. At maturity, the 12-Month Certificate will automatically renew at the current 12-Month Certificate Rate, unless notified in writing prior. The maximum deposit limit is $250,000. Share Certificates use simple interest on a daily basis, which applies the daily periodic rate to the balance in the account each day. Dividends are paid monthly. If funds are withdrawn before maturity, earnings will be reduced and an early-withdrawal penalty may be imposed.

³Anniversary Certificate - This is a 21- month single term certificate and will NOT automatically renew at maturity. The funds will be transferred to your Regular Share Account at maturity and will earn dividends at the prevailing Regular Share dividend rate. Minimum Balance to open account and earn APY is $500. The maximum deposit limit is $250,000. After your certificate is opened you may not make additional deposits to the certificate. Anniversary Certificates use simple interest on a daily basis, which applies the daily periodic rate to the balance in the account each day. Dividends are paid monthly. Limit one Anniversary Share Certificate per member. Cannot be combined with any other Special Share Certificate. 

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