Understanding Rates: Why They Matter for Your Money

Sep 25, 2025
General | Personal Loans

Deposit Rates: Grow Your Savings with Certificates

When you deposit money into a Certificate (also known as a CD), your funds earn interest over a set period of time. The higher the rate, the more your savings can grow.

At ALLIANCE, we make Certificates even easier with one great rate for everyone. That means no matter how much you deposit, whether $1,00 or $100,000, you get the same high rate. No complicated tiers. No hidden requirements. Just simple growth for your money.

APR vs. APY: What’s the Difference?

It’s easy to get confused by the different terms you see on Certificates, so here’s a quick breakdown:

  • APR (Annual Percentage Rate): The simple interest rate paid on your deposit over the course of a year.
  • APY (Annual Percentage Yield): The rate that factors in compound interest, or “interest on interest.” This is the number you want to look at when comparing savings options because it reflects your true annual earning potential.

In short: APY shows the real growth of your money.

Loan Rates: Save Money When You Borrow

Rates don’t just matter for saving, they’re just as important when you borrow. For example, with an auto loan, your interest rate determines how much you’ll pay back on top of the original loan amount.

  • A lower rate means smaller monthly payments and less total interest paid over time.
  • A higher rate can make your loan more expensive in the long run.

By securing a competitive rate with ALLIANCE, members can save hundreds, even thousands, of dollars over the life of their loan.

Why Rates Matter

Whether you’re saving or borrowing, rates impact your financial journey in meaningful ways:

  • Better savings rates help your money grow faster.
  • Lower loan rates help you keep more money in your pocket.
  • Transparency ensures you know exactly what you’re getting, no surprises.

ALLIANCE’s Promise

At ALLIANCE Credit Union, we believe in keeping things simple and fair:

  • One great rate for all Certificate deposits, no matter how much you invest.
  • Competitive loan rates designed to make borrowing more affordable.
  • Clarity and guidance so you understand how rates impact your money.

Whether you’re building savings or financing your next car, understanding rates helps you make smarter financial decisions. And at ALLIANCE, we’re here to make sure you get the most out of every dollar.