Maintaining Certificate Information

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Certificates are deposits made to the credit union for a specified period of time. The member and the credit union agree to the rate paid on each certificate, date of maturity, and the rules governing the instrument at the time of purchase. The agreement is supported by a legal document, a certificate note, stating the agreement and penalties involved should a certificate be redeemed prior to maturity.

Certificate programs can be as diverse as the credit union wants to offer. While the credit union must comply with regulations, programs can have fixed or variable rates for the term of the certificate, and deposit or withdrawal transactions can be performed without surrendering the certificate.

Certificates allow the credit union some assurance that funds will remain on deposit so they can be invested to generate the best return. To attract deposits, certificates normally pay a higher rate of interest than shares. These instruments are used as part of the total investment portfolio of a member in specialized accounts, such as IRAs.

Certificates are identified in Portico as one of the three major member categories – shares, loans, and certificates. These accounts are integrated into all other reporting that is performed by Portico. While there are some specialized reports, certificate information is reported along with other account balances on inquiries, trial balance reports, and statements to show the total account relationship.

Certificate Processing provides the following features and benefits:

  • New certificate setup from cash or shares.
  • Add-on from cash or shares.
  • Multiple certificates per member.
  • Original issue discount (OID) certificate processing.
  • Automatic penalty calculation and renewal capability.
  • Automatic surrender by cash, check or to any share account.
  • Certificate maintenance and inquiry on purchase, available and maturity date, interest rate, last interest amount, current certificate balance, surrender amount, pay to and pay on death indicators, and pledges.
  • Automatic rate change support daily, at renewal, or at period-end.
  • 360 or 365-day dividend calculation.
  • Dividends payable at month-end, certificate anniversary date or member-selected date to shares, certificate balance, or through check disbursal.
  • Ability to pledge certificates on a loan.
  • Certificate purchase form printing.
  • TISA compliance and disclosure.