Certificates
With a Rio Grande Certificate, you set aside funds for a set period of time—between 3 to 60 months—and in return, you receive a higher dividends rate than with a traditional online savings account and are insured up to at least $250,000 by NCUA. The longer your certificate term, the more you earn. It’s a simple way to boost your savings and prepare for your financial future.
- Peace of mind with NCUA insurance to at least $250,000
- Provides higher dividends earnings than a regular savings account
- Funds from other financial institutions welcome
- Certificates are available for IRAs as well
- Low $500 minimum
- Automatic renewal - nothing you need to do when your Certificate renews to keep the same term.
Share Certificate Rates
| Share Certificates | |||
| Effective Date: Thursday, November 21st, 2024 | |||
| Term | Minimum Balance to Open Certificate | Dividend Rate | APY |
| 3 Months | $500.00 | 3.47% | 3.53% |
| 6 Months | $500.00 | 4.40% | 4.49% |
| 12 Months | $500.00 | 4.14% | 4.22% |
| 24 Months | $500.00 | 3.45% | 3.51% |
| 36 Months | $500.00 | 3.35% | 3.40% |
| 48 Months | $500.00 | 3.04% | 3.08% |
| 60 Months | $500.00 | 3.05% | 3.09% |
| APY = Annual Percentage Yield and assumes principal and interest remain on deposit for the term of the Certificate. Rates are subject to change without notice. $500 minimum required for Share Certificates. Substantial penalties may be imposed for early withdrawal and could reduce earnings. | |||
Laddering Strategy
A balance between yield and liquidity
Enjoy the benefit of long term rates while maintaining some liquidity and access to a portion of your funds using a laddering investment strategy. Distribute your investment dollars evenly over a number of certificate terms to maximize both liquidity with yield.
- Minimum balance of $500 required in each certificate
- Guaranteed return on your investment
- Shorter term access to a portion of funds in the event you need to withdraw cash
- Protections against fluctuation in interest rates
Here are some examples:
| Ladder 1 | Ladder 2 | Ladder 3 |
|---|---|---|
| 24-Month Term | 12-Month Term | 6-Month Term |
| 48-Month Term | 24-Month Term | 12-Month Term |
| 36-Month Term | 24-Month Term | |
| 36-Month Term | ||
| 48-Month Term | ||
| 60-Month Term |
Detailed Description
Laddering is an investment strategy that minimizes your exposure to interest rate fluctuations. It is a simple investment technique that involves dividing your investment across two, three, or more share certificates. Laddering generally brings higher dividends than investing in only one share certificate renewed over time. Plus, it keeps a portion of your money reasonably accessible.
The typical rule is the longer the term the higher the return. You create your ladder consisting of several share certificates, each with a different rate and maturity. When a certificate matures, you should reinvest your money in a new certificate at the longest term. You also have the option to pull out your funds if need be. By always replacing the longest maturity – the top rung on the ladder – you’re always reaping the benefit of getting the highest rates available at the time. Also, by having a ladder, you're only reinvesting a portion of your investment when yields are low.
Penalty may be imposed for early withdrawal and could reduce earnings. $500 minimum required for Share Certificates. Rio Grande CU Membership is required.