Share Term Certificate (STC) Account

State Employees' Credit Union offers members the opportunity to earn a higher rate of interest on their savings if they invest their funds for a fixed period of time in one or more STCs. Members have the option to open regular STCs with 6- to 60-month terms or a series of five laddered STCs with graduated maturity dates.

Laddering protects against the risk of interest rate fluctuations and provides a reliable flow of interest income. Owners have access to a portion of their funds at staggered intervals without triggering early withdrawal penalties.

To start "laddering" your STCs, divide the total sum you wish to invest by five and open five STCs with different maturity dates: 12, 24, 36, 48 and 60 months. When each STC matures, regardless of the term, it is automatically renewed/converted to a 60-month STC. At the end of five years, you will own five 60-month STCs with one STC renewing each year thereafter.

Current Interest Rates

See our Deposit Rates for more information.

Comparison of Share Term Certificates

Regular STCs
Laddered STCs
Minimum Principal Amount
$250
$250 for each STC (total of $1,250)
Term
6, 12, 18, 24, 30, 36, 48 or 60 months
12, 24, 36, 48 and 60 months (Must open one of each of the five STCs.)
Interest Rate
Fixed for the term of certificate
Fixed for the term of certificate
Interest
Accrues daily on principal only; does not compound
Accrues daily on principal only; does not compound
Interest & Principal Payment/Renewal Options2
Interest transfers monthly to an SECU deposit account selected by the owner.1

Principal can transfer at maturity to the interest deposit account or renew with the same term.
Interest transfers monthly to an SECU deposit account selected by the owner.1

Principal renews to a 60-month term.
Cancellation and Early Withdrawal Penalties
No penalty if STC is canceled during grace period.3 If canceled before the maturity/renewal date, there is an early withdrawal penalty equal to 90 days of interest, or all interest accrued, whichever is less.
No penalty if STC is canceled during the grace period.3 If canceled before the maturity/renewal date, there is an early withdrawal penalty equal to 90 days of interest, or all interest accrued, whichever is less.

Note: If an STC is canceled, the laddering structure will be incomplete.
Collateral
Funds in an STC can be used as collateral on SECU loans only; funds cannot be used as collateral on loans at other financial institutions.4
Funds can be used as collateral on SECU loans only; funds cannot be used as collateral on loans at other financial institutions.4
You can open a share term certificate5 online via Member Access.
1 For 6- and 12-month certificates only, at maturity members can either transfer interest to a deposit account of their choice or renew the STC and retain the principal in the account.
2 A notice will be sent 14 days before maturity or renewal of the STC outlining options available.
3 The grace period is a seven-day period beginning on the day after the STC renews.
4 Funds designated as collateral for a loan cannot be withdrawn until the loan is paid in full.
5 STCs are not eligible for payroll deduction or funds transfer.