First Tech Share Certificates

First Tech Share Certificates Review

First Tech Share Certificates are offered by First Tech, a credit union founded in 1952 and based in San Jose, CA. First Tech Share Certificates are available in 50 states (and Washington, DC).

Key Takeaways

• Multiple certificate account types. First Tech Share Certificate offers a variety of certificate account types, such asbump up certificates, IRA CDs, and traditional CDs.
• Very high annual percentage yield (APY). This account offers an annual percentage yield of up to 4.55%, which is much higher than the national average for a certificate account.
• $500 minimum deposit. This is a typical minimum initial deposit for the certificates we track.
• Wide selection of certificate terms. First Tech Share Certificate allows you to create a certificate ladder by spreading your cash across certificates with different terms. This combines the benefits of frequent access to funds and higher rates of return on your savings.

Pros & Cons of First Tech Share Certificates

First Tech Share Certificates FAQ

Are share certificates from First Tech Federal Credit Union federally insured?

Yes, your share certificates are insured up to $250,000 per share owner for each account ownership category. The National Credit Union Administration (NCUA), a federal agency, administers the insurance fund and regulates federally insured credit unions. The fund is backed by the full faith and credit of the U.S. Government.

What is the difference between CDs and Share Certificates?

Certificates of Deposit (CDs) and Share Certificates are both deposit accounts where your money can grow at a fixed rate for a predetermined period of time. Both are low-risk and federally insured products designed to give you a better rate on your deposits than typical savings accounts. The main difference between them is that CDs are offered by for-profit banks, whereas Share Certificates are offered by member-owned, not-for-profit credit unions.

What types of share certificates does First Tech Federal Credit Union offer?

• Traditional share certificates. These share certificates pay a fixed interest rate if you deposit a fixed amount of money for a specific term. Once the maturity date arrives, you have the option of cashing out or automatically renewing the share certificate for another term.
• Bump-up share certificates. Bump-up share certificates allow you to increase the interest rate you earn on your savings if the going interest rates rise. These share certificates are useful in a changing interest rate environment.
• IRA share certificates. An IRA share certificate is a type of IRA that consists entirely of share certificates. In general, you can invest in share certificates in any IRA, but First Tech Share Certificate offers a share certificate that is specifically for retirement.

What rates does First Tech Federal Credit Union offer on its share certificates?

First Tech Share Certificate offers an APY starting at 2.20% and ranging up to 4.55%. APY stands for annual percentage yield and shows the interest rate paid by the share certificate after taking into account compounding. This is higher than the typical interest rate for online-only checking accounts, which is around 1% APY.

What is the minimum deposit to open a share certificate account with First Tech Federal Credit Union?

First Tech Share Certificate require a minimum deposit of $500 to open an account.

What is the grace period for First Tech Share Certificate?

There is a 10-day grace period for First Tech Share Certificate. A grace period is a period of time during which you can withdraw the money in your share certificate without paying an early withdrawal penalty. A grace period starts the day after a share certificate’s maturity date, or the final day a share certificate is opened. Standard share certificates renew automatically at the same term if you don't withdraw your money after the 10-day grace period. Note that the new share certificate rates probably won’t be the same as the original.

What types of fees, such as early withdrawal penalties, does First Tech Federal Credit Union charge?

Financial institutions don't typically charge many fees on share certificates. However, most charge a fee if you choose to withdraw your money before the term ends.

First Tech Federal Credit Union charges an early withdrawal fee.