Why is the APY used to advertise Certificate of Deposit dividend rates?
The purpose of the APY is to allow you to easily compare certificates with different terms, and compounding monthly is a much better deal for you when the dividend rates and terms agree. All of USU Charter Credit Union’s Certificates of Deposit compound monthly. • What is required to have a Certificate of Deposit with the Credit Union? Savings certificates require a minimum opening balance of $500.00. A $25.00 membership share is required. Your options include 3 month, 6 month, 1 year, 2 year or 3 year certificates. There is also the option of having our 4 or 5 year one-time rate “bump” certificates. • What is USU Charter Credit Union’s 4 and 5 year certificate bump rate option? Share certificates with a 4 or 5 year maturity have a one-time interest rate “bump” option. You can notify the Credit Union anytime during the original term of the certificate to adjust the rate to the 4 or 5 year certificate rate in effect on the date of the notification. Only one rate “bump” is allowed during
