Short-Term Gains: Certificate Accounts and Money Market Accounts

In the world of personal finance, sometimes one investment can pay off, and the opportunity for another one is months, maybe more than a year, away.

What to do in the meantime? Traditionally, the stock market is great for long-term investments, but investors expose themselves to volatile ups and downs over the short term. So, do you want to roll the dice when your investment scope is less than two years?

There are a number of interest-bearing, deposit-insured accounts available for your money at financial institutions (credit union accounts in the United States are federally insured up to $250,000 per individual depositor through the National Credit Union Association, or NCUA). These are worry-free places, tried and true, to watch your money grow. Two widely used options are certificate accounts and money market accounts. Both offer higher interest yields than a regular savings account. Here’s a quick look at their features:

RBFCU members have access to extended features with certificate accounts and money markets accounts. Higher interest yields are available on “tiered” money markets, and holders of certificate accounts can collateralize them to a “Certificate Secured Loan.” Funds in certificate accounts are not subject to an early withdrawal penalty if collateralized to these loans.

Clearly, there are ways to invest money with safety and flexibility.

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