Your 2023 tax forms have been mailed. They are also available in digital banking by selecting Documents & Statements, then Tax Forms & Notices. Learn more at selco.org/tax-forms.

After Recent Decline, CDs Rebound

Planning Your Future Forming Money Habits

With the highest rates in years, CDs are well worth a look. Not only are SELCO’s certificate rates among the best anywhere, if our rates rise within 30 days, we'll automatically increase yours.

Rewind to the early 1980s. The United States was feeling the sting of two full-blown recessions. Inflation rates hovered around 10–13% and interest rates skyrocketed to 21%. The worst downturn since the Great Depression.

Woman standing at the beach

But this plunge also gave consumers the option to lock into sky-high rates on certificates of deposit that have gone unrivaled since. In December 1980, the interest rate for a 3-month CD surged to 18.65% APY (annual percentage yield).

“If an investor timed it well, deposit returns outpaced the inflation rate, which created favorable results for savers,” said Tiffany Washington, Executive Vice President of Finance & Operations at SELCO. “However, it had the opposite effect on borrowers, with loan rates through the roof.”

Over the next three decades, certificates experienced a lot of volatility, fluctuating between 8% and 2%. But by late 2015, 6-month certificates hit rock-bottom, with average yields barely clearing a tenth of a percentage point.

With such a dismal recent history, it’s no wonder so many younger adults are unfamiliar with certificates. But now’s a great time for savers of any age to become better acquainted.

Certificates reward members for committing their savings for a set period, paying higher dividend rates than typical savings, checking, or money market accounts. With a minimum balance of just $500 and NCUSIF-backed insurance for up to $250,000, certificates are an excellent option for anyone seeking guaranteed returns without risk. 

Rate shopping? SELCO's best-rate guarantee is hard to beat

As a SELCO member, you can count on exceptional certificate rates across the board. We constantly track the marketplace and make adjustments to ensure our members are receiving the best possible returns on certificates, typically beating rates offered by other local financial institutions and big national banks alike.

And if our rates increase within 30 days of opening your certificate, we'll boost your rate to match, giving you peace of mind that your money is earning as much as possible. It's what we call our best-rate guarantee. 

Given the current environment, now may be the ideal time to consider socking away some money in a certificate. And if you have long-term savings at another financial institution, it’s a great time for an interest rate check-up against SELCO’s certificate rates.
 
Questions about SELCO's certificate options? Stop by your local branch or contact us by phone, chat, or text. Your not-too-distant-future self will thank you.

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