It seems as if there are thousands of different investments on the market to help you grow your income. While stocks, bonds, and other traditional methods carry varying levels of risk, there are certain ones that provide a return you can expect. If you’re looking for a safe way to invest your money without increasing your overall risk level, a share certificate from a local credit union might be your best option. Hawaiian Tel Federal Credit Union offers share certificates and explains how they work.

What Is a Share Certificate?

A share certificate, which can be purchased at a credit union, is an insured instrument by NCUA up to $250,000. Unlike stocks, which can increase or decrease in value based on market volatility, a share certificate provides a stable increase of money. You select the amount you wish to invest and the term length, and you will receive a set dividend rate—or annual percentage yield (APY). To get the most out of your investment, it has to sit for the entire length of the term you choose, which can range from six months to five years. The longer the term is, the higher your dividend rate will be.

Is a Share Certificate Right for You?

If you want to expand your investment portfolio without taking on the significant risk associated with stocks and other high-profile investments, speak with a personal banking specialist at your credit union. However, it’s worth noting you may not have access to your money for the full length of the certificate’s term, so you should invest only an amount you’re comfortable living without for that period.

If you’re interested in growing your income and diversifying your investments, let the experienced personal banking specialists at Hawaiian Tel Federal Credit Union help. To learn more about their services and to find your nearest credit union location, visit hitelfcu.com or call them on Oahu at 832-8700 or toll-free at (800) 272-5255.