Share Certificates and other higher dividend-earning accounts are excellent for maximizing your savings, are federally insured, and have a guaranteed return. When you open a Share Certificate, you are committing to keep your funds in the account for a specific amount of time. How do you protect this investment against the risk of rising interest rates?
Share Certificate laddering is a savings strategy where you allocate your funds to Share Certificates with different maturity dates and interest rates or Annual Percentage Yield (APY). Instead of your money locked in with one Share Certificate, you allot your money in a variety of terms, from short to longer terms. For instance, with $100,000 you might open a 6 month Certificate with $20,000, a 12 month Certificate with $50,000, and a 24 month Certificate with $30,000.
Benefits:
• Increased accessibility to your money. Your cash will become available to you at different times, offering you the ability to decide how to use maturing funds as the market changes.
• You decide how you want to split up your cash and whether to rollover each time one matures.
• You’ll be able to choose longer-terms with higher rates and still have Share Certificates maturing on a regular basis. Generally, the longer the term, the higher the rate.
LBS Financial offers Share Certificate terms between 3 and 60 months. For a limited time only, take advantage of our 33 Month Promotional Certificate and earn 3.00% APY* for new money only. Call 800.527.3328 or visit us for more information.
*APY=Annual Percentage Yield. 2.96% dividend rate. Share Certificate rates are in effect until the maturity date. APY is based on the assumption that dividends remain within the account. The dividend rate and APY are paid on the entire balance in the account. Withdrawals will reduce earnings; there are penalties for early withdrawals; and fees may reduce earnings. New money must come from another financial institution and cannot be transferred from an existing LBS Financial account. $2,500 minimum opening amount with no maximum deposit amount. 33 Month Certificate rolls into a 30 Month Certificate at maturity if funds are not withdrawn.
Rates are subject to change without notice. 33 Month Promotional Certificate may be discontinued at any time.
