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Product Spotlight: Bump-Up Certificates

By: Holly Benedetto03.24.22

When it comes to saving, the way you choose to save will greatly influence your return on investment. Aggressive options may have the highest yield while posing the greatest risk of loss, where conservative saving options offer a slower, but risk-free return.

Certificates of deposit, also known as just certificates, are in the latter group and provide a safe way to grow your funds over time. To explore this savings option, continue reading.


What is a Certificate?

Earn more on your savings than with a traditional savings account by opening a certificate of deposit or just certificate. A certificate is an account where a lump sum of money is deposited for a predetermined amount of time in exchange for a higher interest rate.

Certificates are a safer investment than stocks or bonds because they offer the opportunity for growth and a guaranteed rate of return. Money put into a certificate remains in the account for the duration of the term limit unlike a standard savings account, but in exchange, earns higher dividends.

You can choose from short- or long-term certificates, ranging from a few months to several years. Longer terms mean greater dividends and are a conservative investment option in times of market volatility. At American Heritage, you can begin with a low minimum deposit of $500 or more to start earning.


What is a Bump-Up Certificate?

Once a regular certificate has been opened, the interest rate at the time of opening is the rate that account is locked into for the duration of the term and will not raise or lower.

A Bump-Up Certificate allows for the account owner to take advantage of rising interest rates with the option to increase dividends one time during the term of your Certificate. Once you set the higher rate, it will remain that increased rate for the remaining duration of your Certificate’s term.


Why should I choose a Bump-Up Certificate?

Choosing a Bump-Up Certificate can help prevent feelings of missing out on increasing rates in a changing economy, since you are able to increase your rate if federal changes happen but be locked in if they remain the same or decrease.

Bump-Up Certificates tend to have lower base dividends and longer term lengths than standard Certificates but allow for greater returns based on a changing market. In the right environment, Bump-Up Certificates can outperform a standard certificate, without the increased risk of other investment options.


What are the current Certificate rates?

To see our current rates and terms, click here.


What other savings options do I have?

Sometimes people are not in a position to set aside large amounts of funds for an extended period of time and require some liquidity for their accounts. American Heritage offers multiple savings account options to fit diverse financial needs.

  • For more modest savings, a standard savings account provides the maximum degree of flexibility while earning dividends.
  • More substantial savings can be placed in a High-Yield savings account, which requires a minimum daily balance to earn its high rate and avoid a monthly fee.
  • Money Market accounts offer greater dividends than a standard savings account when maintaining a high balance but have a lower barrier to entry than a High-Yield account.
  • For life-long saving, consider IRAs and retirement accounts with investing advice from the experts at our Investment & Retirement Center (IRC).


How do I get started?

To open your new Certificate or other savings account, click here to apply today. We can’t wait to help you build a better future through healthy savings habits.



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