When your certificate (the credit union equivalent of a certificate of deposit offered by banks) matures, which means it has reached the end of its term, you have a decision to make. Do you want to renew for an additional term of the same length, change to a new term, or withdraw your funds?
We walk through each of these options below and outline some important points to consider as you decide.
Option 1: Renewing Your Certificate
If you don’t want to make changes to your certificate, you can renew it for the same term you originally chose when it reaches maturity.
While the term will remain the same in this scenario, the rate may differ. The rate of your renewed certificate will be determined at the time of renewal.
If you want to renew your certificate for the same length of time as your original term, there’s no action you need to take. The certificate will automatically renew if we don’t hear from you within 10 calendar days of your maturity date.
Option 2: Change to a New Term
If you want to keep your certificate account open, but want to adjust the term, you can make changes up to 10 calendar days after your maturity date.
This allows you to choose a new amount of time that you’d like the certificate to remain open for. To make this change, you must contact us before the 10-calendar-day grace period ends.
In this instance, you can choose from any of the currently available certificate term options and will receive the associated rate at the time of renewal.
Option 3: Withdraw Your Funds
If you’d like to use or move your money, you can choose to withdraw your funds from the certificate. As with the previous option, you have up to 10 calendar days after the maturity date of your certificate to withdraw the funds without penalty.
What to Consider When Your Certificate is Maturing
What to do when your certificate matures is a personal decision that you should base on your individual circumstances. While no one can make the choice for you, here are some important things to consider:
- What is the market doing now and what is it expected to do in the near future? Will locking into a longer term certificate limit your ability to profit in the future if rates are likely to go up? Or will locking into a shorter term limit your money’s growth if rates are likely to drop?
- Do you need cash now? Will you soon? When you anticipate needing access to the money in the certificate can impact your decision. You’ll want to make sure you’re choosing a term that matches your needs to avoid any fees you could face with early withdrawals.
- What else can the money do for you? Could you put the money in your certificate to better use? For instance, do you have high-interest debt you’re struggling to repay or another investment option you’d like to explore?
Whatever You Choose, We’re Here for You
Whether you renew, make changes, or withdraw the funds from your certificate, one thing will remain the same – you’ll continue to receive great benefits from your PSECU membership.
We offer a low minimum balance requirement of $500, flexible terms, no fees, and competitive rates for our certificates that you can benefit from if you decide to renew or change terms.
And if you decide withdrawing is the best option for you, you’ll remain a member of PSECU. You’ll keep your access to our high-quality, low-cost financial products and services and enjoy all the benefits of banking with PSECU.