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Why Choose a Certificate Instead of a Traditional Savings Account?

Authored By: MIT FCU

When it comes to saving money, most people think of a traditional savings account first. While these accounts are safe and accessible, they don’t always offer the best growth potential for your hard-earned dollars. That’s where Certificates come in.

Certificates typically offer higher, fixed interest rates compared to standard savings accounts. This means your money earns more over time—without the risk of market ups and downs. Plus, because you agree to keep your funds in the account for a set term, you’ll benefit from the security of guaranteed returns.

Certificates are especially great for goals with a clear timeline, like planning a vacation, saving for a down payment, or building an emergency fund with extra earning power. While you may sacrifice some flexibility since your money is locked in for a period, the tradeoff is steady growth that outpaces most traditional savings options.

In short, if you’re looking for a safe, predictable, and more rewarding way to save, a Certificate could be the smarter choice than a traditional Savings account. At MIT Federal Credit Union, we offer competitive rates at a variety of terms from 3 to 60 months. Check out our Certificate options and start saving more today!



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