What is the difference between a CD and a share certificate?

Here's an explanation for Both certificates of deposit (CDs) and share certificates are low-risk deposit accounts where your money can grow at a fixed rate. The main distinction between them is that CDs are products offered by for-profit banks, while share certificates are offered by member-owned, not-for-profit credit unions.

Are share certificates & CDs insured?

Both Share Certificates and CDs fall under Federal insurance provision if the institution is Federally insured – either the National Credit Union Administration (NCUA) or Federal Depository Insurance Corporation (FDIC) respectively. Both NCUA and FDIC provide insurance up to at least $250,000 per depositor.

What are the pros and cons of CDs and share certificates?

The pros and cons of CDs and share certificates are: Pros: Interest rates are typically higher than with traditional savings accounts. Your interest rate is fixed for the entire term, making interest earnings predictable. CDs and share certificates are safer than many other types of investments.