What is a Share Certificate at a Credit Union? An Overview

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What is a Share Certificate at a Credit Union - Legacy Stock Transfer

After working hard and earning your well-deserved money, you may wonder where to store it so it can grow. Several institutions can store your money in different forms. Over time, there has also been an exponential growth in stocks. People find the potential it brings to growing their money fascinating.

Also, stocks give you the right to own shares of a company. A stock certificate proves this. Credit unions also offer similar opportunities to their members. Let us explore the wonder of share certificates.

What is a Share Certificate at a Credit Union?

Credit unions provide share certificates. A shareholder certificate allows members to own credit union shares. They do this by depositing money in a savings account. You may have seen how banks issue certificates of deposit. They are also valid for credit unions and named share certificates.

How is it Different from a Normal Share Certificate? 

In investing, share certificates show that a person owns shares in a corporation. When issued, these certificates show the name of the owner. They also show the name of the corporation, the number of shares owned, and other details. They are essential for keeping track of the corporation’s investors and their transactions.

Yet, share certificates in credit unions are not legal documents. They are investments. The principle of ownership stays the same. Members own part of the credit union by investing in a certificate. The credit union pays them through increasing dividends. These profit from the credit union’s use of their money.

Benefits of Owning a Share Certificate from a Credit Union

Enrolling in a stock share certificate from a credit union gives you an extra premium.

  • We guarantee you will receive a fixed return. Most credit unions offer a fixed interest rate. It assures you that your estimated earnings will stay the same. They come from your deposit.
  • You can invest your money in a certificate on various terms, varying depending on your needs. These terms may range from three months to ten years.
  • Your savings are safe. The National Credit Union Association (NCUA) protects credit unions.
  • Share certificates offer a high dividend or interest rate. It is higher than regular saving accounts. This is because they invest your money in the long run and do not pull it out of the account.
  • You can open an account with a low deposit. This is beneficial, especially for fresh graduates. For as low as $500.00, they can grow their money.
  • Expect no extra fees. Say goodbye to exorbitant maintenance fees that hinder growing your money.

Risks of Obtaining a Share Certificate from a Credit Union

It may be tempting to invest. But, enrolling in a certificate of shares of stock from a credit union has risks, such as the following:

  • Having limited access. The certificate ties your money. You can only withdraw it once it reaches maturity, but you can pay a penalty. This restricted access is inconvenient for people needing to use their money immediately.
  • Your certificate has a fixed rate. It stays until you withdraw. The return from your certificate may be much lower. It may be lower than that of other investments.

How do you Open a Share Certificate from a Credit Union?

If you have decided, here are the steps to open a share certificate from a credit union.

  1. Choose the right credit union for you. Do you want to grow your money for three, one, or five years? You can choose from various credit unions. They offer short-term and long-term investments. Also, consider the expected earnings you may get from investing.
  2. Check if you are eligible. You may need to look into the requirements of each credit union. They have rules for who can be a member, such as residency or employment limits.
  3. Decide on a platform. You can open your certificate online or visit a branch.
  4. Put in your deposit. After you apply, you may place the smallest deposit in your share certificate.

Stock Management at its Finest

Stock transfer agencies must be trustworthy, like credit unions. They must be well-established in managing the finances of various clients.

Since 1996, Legacy Stock Transfer has been the country’s top stock transfer agency. We provide full stock services for our valued shareholders. Our trusted stock transfer agents can give your company many services. We tailor them to fit your needs. They cover services for DWAC/FAST eligibility. They also cover stock splits and the Direct Registration System (DRS).

We are also known for issuing certificate of ownership in a corporation. They are great for tracking investors and transferring shares. If you have lost your stock certificate, do not fret; we can also help you replace your stock certificates. If you have an interest in our stock services, we are happy to assist you. Ring us at 972-612-4120 or send us a message here.

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