What is the difference between a Certificate of Deposit and a Share Certificate?

A Share Certificate at your credit union works the same way as a certificate of deposit (CD) at a commercial bank, paying interest on a lump sum for a fixed period of time. Certificates differ from regular savings accounts because the money must remain on deposit, untouched for the entirety of the term to avoid penalty fees or lost interest. Typically, a Share Certificate will have higher dividend rates than regular, more liquid savings accounts.