What is the difference between a Certificate and a savings account?
There are two main differences: a Certificate can earn higher dividends, but you must wait a specified amount of time to get the money back out. See additional differences below:
Certificates
- Rate doesn't change during the term of the account
- Accurately estimate your earnings over time with a fixed rate
- Possibly get higher rates than savings accounts when you select longer terms
- Choose a term from 6 months to 5 years
- No fees when you hold your account to maturity, but there can be penalties for early withdrawal
- No access to your deposit through checks, ATM transactions, or electronic transfers
Savings Accounts
- Rate can adjust while you hold the account
- Typically lower rates than Certificates, but your funds are liquid and easily accessible
- The Elements Helium Savings Account has rates as high as APY for balances greater than $2,500
- Access to your deposits through ATMs and compatible with electronic transfers