What Is a Share Certificate? Understanding How They Work

6/24/2025

 

What Is a Share Certificate?

A share certificate, often called a certificate of deposit (CD) at banks, is a fixed-term savings account offered by credit unions. You deposit money for a set period — from a few months up to three years — at a predetermined interest rate. In return, your funds earn a higher yield than a typical savings account.

At LincOne FCU, share certificates are insured by the NCUA up to $250,000. They’re ideal for members who want low-risk, steady earnings. 

How Do Share Certificates Work?

  1. Pick Your Term
    LincOne offers terms from 3 to 36 months, such as 3, 6, 12, 18, 24, or 36 months. Each term comes with its own Annual Percentage Yield (APY). 
     

  2. Fund Your Certificate
    A minimum of $500 is required to open any certificate. You also need to maintain a $25 savings account as a share account. 
     

  3. Earnings & Compounding
    Dividends are calculated daily, compounded monthly, and credited monthly. Your APY stays locked in for the full term.
     

  4. Early Withdrawals
    You can access funds early, but a penalty applies:
     

    • 30 days’ worth of dividends for 3‑ or 6‑month certificates

    • 90 days’ worth of dividends for terms of 12 months or longer

The penalty may be waived if withdrawn within 10 days before maturity or 7 days after. 

  1. Maturity & Renewal
    At maturity, your certificate automatically renews at the current rate for the same term. You can also choose to withdraw or reinvest. 
     

 

Current Share Certificate Rates (as of June 18, 2025)

Term

APY

3 Months

1.25%

6 Months

4.07%

12 Months

1.76%

18 Months

2.78%

24 Months

2.27%

36 Months

2.27%

(Minimum $500 to open; APY assumes interest remains until maturity. Early withdrawal reduces earnings.) 

View LincOne’s current Share Certificate rates here.

Example: How Much Can You Earn?

Let’s say you deposit $5,000 into a 6-month share certificate at LincOne with a 4.07% APY.

Here's how that adds up:

  • Initial deposit: $5,000
     

  • APY: 4.07% (compounded monthly)
     

  • Term: 6 months
     

  • Estimated earnings: ~$102.62
     

  • Total at maturity: ~$5,102.62
     

(This is an estimate. Actual dividends may vary slightly depending on compounding intervals and exact days in the term.)

Now imagine you roll over that certificate or invest a larger amount—the earnings can grow even more.

 

FAQ: Answers to Common Questions

Q1: Can I withdraw early?
Yes—but early withdrawals trigger penalties detailed above. It’s best to plan ahead to avoid losing dividends. 

Q2: What’s the minimum investment?
Opening a certificate at LincOne requires at least $500, plus maintaining a $25 share savings account.

Q3: Are share certificates federally insured?
Yes—LincOne share certificates are covered by NCUA insurance up to $250,000 per account. 

Q4: What terms are available?
Choose from 3 to 36 months, balancing your goals and flexibility.

Q5: What happens at maturity?
LincOne auto-renews your certificate at current rates. You'll receive a notice and can opt to withdraw or change terms. 

View the full LincOne Share Certificate Disclosures here

Why Choose LincOne Share Certificates?

  • Competitive local rates — e.g., 4.07% APY on 6‑month terms
     

  • No market risk — enjoy stable returns, no volatility
     

  • Monthly compounding — your earnings build steadily
     

  • Community-focused — your investment supports Lancaster County
     

  • NCUA insured — up to $250,000, just like all LincOne savings products 

 

Who Is a Share Certificate Best For?

  • Conservative savers: want low-risk, better-than-savings returns
     

  • Short‑ to mid‑term planners: targeting goals in 3–36 months
     

  • Individuals preferring fixed rates and guaranteed returns
     

  • Credit union members who value local impact and community support
     

How to Open a Share Certificate at LincOne

You can open a share certificate in person at any of LincOne’s three Lincoln locations. 

4638 W St.

Lincoln, NE 68503-0659

2500 N St.

Lincoln, NE 68510-1244

6700 S. 70. St.

Lincoln, NE 68516-3603

 

Share certificates at LincOne FCU offer a secure, predictable, and community-supportive way to grow your savings. With no market risk, federally insured protection, and attractive APYs—especially on 6-month terms—they’re a smart tool for planning ahead. Ready to make your money work harder? Open a share certificate today and earn more with LincOne.



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