We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. We survey 90 credit unions every weekday to determine which ones have the best CD rates. We’ve created this list of credit-union-specific CD rates for people who prefer to work with credit unions because they’re customer-owned and often have better rates than banks. The credit unions below are available to customers nationwide, and they’re all federally insured institutions. Your funds are protected through the National Credit Union Administration, up to $250,000 per depositor per institution. The list below highlights the best credit union CDs by term, with a few months of wiggle room on either side of the term to capture the best rates available. When there’s a tie, we favor credit unions with the lowest minimum deposit requirement and the most forgiving early-withdrawal policies. Scroll down for the top credit union CD rates available as of May 30, 2024. Best Credit Union CDs Best Credit Union CDs Frequently Asked Questions Based in Midland, Michigan, Dow Credit Union was founded in 1937 and has more than 77,541 members and $2.12 billion in assets. Membership is available to employees of Dow Chemical, Dow Corning, and their affiliates, as well as to members of the Midland Country Club and Great Lakes Loons Founders Club. Additionally, employees of more than 70 other businesses and organizations are eligible. In addition to CDs, the credit union provides options for checking, savings, and multiple lending options. INOVA Federal, headquartered in Elkhart, Indiana, has six branches in Indiana and one in Berkeley, California. It also is part of the CO-OP network of shared branches and ATMs. The credit union was established in 1942 for the employees of Miles Laboratories. INOVA Federal offers personal and business accounts, loans, credit cards, insurance products, and CDs with terms from 30 days to six years. If you’re not eligible for membership through your employer, you can join by joining the Tru Direction Financial Literacy Program with a $5 donation. You also must keep $5 on deposit at the credit union. Formerly known as Fort Knox Federal Credit Union, Abound Credit Union is a Kentucky-based institution with ties to the Fort Knox Army base. Started by 10 people in 1950, Abound claims it is the largest credit union in the state, with 18 locations and more than 100,000 members. While it caters to military and civil service employees and their families, anyone can join, as long as they pay the $10 one-time membership fee and keep at least $5 in a savings account. Abound is part of the CO-OP network of shared branches and ATMs. It also offers electronic banking on its website and through a mobile app available for both Android and Apple devices. Started in 1949 by members of the scientific community, NASA Federal Credit Union serves over 200,000 members nationwide. Anyone can join the credit union by becoming a member of the National Space Society. You can join via the NASA Federal Credit Union application page, and your first year of membership is complimentary. Members are also required to sign up for a primary savings account with a minimum deposit of $5. Credit Human was formed in San Antonio, Texas, in 1935 to serve members of the National Federation of Federal Employees Local #28 union. It took the name Credit Human in 2016. Membership is available nationwide to anyone who joins the American Consumer Council, and Credit Human agrees to pay the fee to join the ACC. The credit union has several branches throughout Texas, but members nationwide can access their accounts through online banking, a mobile app, or through CO-OP's shared branching network. Credit Human is not part of a fee-free ATM network. Vibrant Credit Union is based in Moline, Illinois, and was started in 1935 by eight people as Deere Harvester Credit Union. It has branches in Illinois, Iowa, and Indiana, but membership is available to anyone nationwide who opens a savings account with a minimum $5 deposit. Online banking is available, and the credit union also has a mobile app compatible with both Android and Apple devices. Account holders also can manage their accounts at shared branches that are part of the CO-OP network. Apple Federal Credit Union was founded in 1956 and has branches in northern Virginia. But customers nationwide can access accounts and use shared locations (including over 53,000 ATMs) through shared branching. If you’re not already eligible to join the credit union, you can qualify by joining the nonprofit Northern Virginia Athletic Directors, Administrators, and Coaches. NVADACA, which supports student athletes, offers membership at $20 per year. To get started with Apple Federal Credit Union, you’ll need to open a savings account with at least $5. Credit unions are financial institutions that provide banking services like checking accounts, savings accounts, and loans. They are customer-owned not-for-profit organizations, and they tend to have a community focus. To join a credit union, you typically need to share a common bond with other customers. For example, you might all work for the same employer or live in the same area. However, some credit unions, like those listed here, are available to customers nationwide. To qualify, you typically need to join a nonprofit organization, often with a small donation. Credit unions provide many of the same services as banks. But their not-for-profit structure makes them unique. In theory, credit unions primarily focus on serving customer-owners and keeping rates competitive. Without the need to generate profits for outside investors or pay taxes on earnings, credit unions might have an edge. Still, it’s always worth comparing offerings from both banks and credit unions. “Membership” is another difference. To join a credit union, you must meet specific eligibility criteria. Banks, on the other hand, make their services available to anybody. Concerned that a credit union is too small? If your credit union participates in shared branching, you can use branches and ATMs at other credit unions for free. The CO-OP shared branching network has more than 6,000 branches across the U.S.—more than Wells Fargo or Chase. Pros Customer-owned organization designed to serve them Competitive rates on loans and deposits Community focus Government-backed deposit insurance at federally-insured institutions Cons Eligibility requirements may pose hurdles for some consumers Small institutions might lack some services Some large credit unions lose the community feel and focus Credit unions often pay higher rates on CDs than banks. Without the need to maximize profits for outside shareholders, credit unions can maximize what they pay out in savings accounts and CDs. Plus, credit unions don’t pay federal income taxes. That provides additional resources for offering high rates to members. A CD is an account that pays a specified rate for the length of time that you choose. When you use a CD, you commit to leaving your funds with the bank, and you may have to pay a penalty if you withdraw funds early. Banks and credit unions typically reward you for your commitment by paying higher rates on CDs than they pay on savings accounts. CDs are “time deposits.” To open a CD, you select a term (six months or three years, for example) and deposit money. Your CD “matures” when the term ends, and you can withdraw the proceeds or reinvest them in another CD. Doing nothing prompts some banks and credit unions to reinvest your funds automatically into another CD with the same term. CDs pay more than savings accounts because you promise to keep your money untouched for an extended period. But if you need to withdraw funds, you can often do so—at a cost. An early withdrawal penalty is a charge you pay to your bank when you take money out before a CD matures. Penalties are often quoted as a number of days’ worth of interest. For example, a bank or credit union might have the following schedule of charges: Early-withdrawal penalties typically increase on CDs with longer terms. Some CDs do not have early withdrawal penalties. You can take funds out of a no-penalty CD at any time without paying additional charges. You might have to wait at least seven business days after opening the account, but the money is free and clear after that. No-penalty CDs offer flexibility, but you may pay a small price to keep your options open. These CDs typically pay lower rates than CDs that feature an early withdrawal penalty (all other things being equal). Still, a no-penalty CD might make sense if you’re setting aside funds for an unexpected need. Likewise, if you think rates might fall, you can use a no-penalty CD instead of a savings account. That strategy allows you to lock in today’s rates (for a while, at least) while keeping your money liquid. A CD ladder is a strategy that helps you avoid problems that may arise if you put all of your money into one CD. To use a laddering strategy, purchase multiple CDs with different maturity dates. By doing so, you have CDs mature periodically, and you can use those funds for spending needs. What’s more, as rates rise and fall, a ladder prevents you from investing everything into the lowest-yielding CDs. For example, if you have $20,000 to invest, you might use the strategy below: Whenever a CD matures, you put the proceeds into a new 24-month CD. As you cycle through CDs, you have cash available every six months. You can spend that money or reinvest at whatever rates are available. Competing CDs can differ in multiple ways. Factors to consider when deciding which option is best for you include: CDs are excellent for keeping your money safe while maximizing your earnings. If you’re keeping funds in a bank or credit union, a CD probably offers the highest rate. But other vehicles might be a better fit for your needs. As member-owned organizations, credit unions are an excellent place to buy CDs. They often pay more than banks, and even small credit unions might provide ample access to branches and ATMs. When you commit to a term of several months (or more), credit unions tend to pay more on CDs than they pay in savings accounts. But watch out for early withdrawal penalties, and consider using no-penalty CDs or a CD ladder if you want to avoid getting stuck in a CD that causes problems. Article Sources National Credit Union Administration. "Share Insurance." Dow Credit Union. "2022 Annual Report." Dow Credit Union. "Join." Dow Credit Union. "About." NASA Federal Credit Union. "About Us." Apple Federal Credit Union. "About Us." NVADACA. "NVADACA Membership." Apple Federal Credit Union. "Become a Member." Co-op Solutions. "Co-op Shared Branch." National Credit Union Administration. "Credit Union and Bank Rates." IRS. "Information for Federal and State Credit Unions Regarding Automatic Revocation of Exemption." National Credit Union Administration. "Share Insurance."Best Credit Union CDs for June 2024
Term Credit Union APY Minimum Deposit Early Withdrawal Penalty 3 Months (2–4 months included) Dow Credit Union 5.30% $500 3 months of interest 6 Months (5–9 months included) INOVA Federal Credit Union 5.50% $200 90 days of dividends 1 Year (10–14 months included) Abound Credit Union (10 months) 5.25% $500 3 months of interest 18 Months (15–20 months included) NASA Federal Credit Union (15 months) 5.40% $10,000 All interest up to 182 days 2 Years (21–29 months included) Credit Human 5.25% $500 Greater of $50 or 270 days of interest 3 Years (30–41 months included) Vibrant Credit Union 5.00% $5 All interest earned 4 Years (42–53 months included) Credit Human 4.65% $500 Greater of $50 or 360 days of interest 5 Years (54–66 months included) Credit Human 4.65% $500 Greater of $50 or 360 days of interest 10 Years (114–120 months included) Apple Federal Credit Union 3.81% $500 All earned interest; 36 months maximum Best 3-Month CD : Dow Credit Union
Best 6-Month CD : INOVA Federal Credit Union
Best 1-Year CD : Abound Credit Union
Best 18-Month CD : NASA Federal Credit Union
Best 2-Year, 4-Year, and 5-Year CDs : Credit Human
Best 3-Year CD : Vibrant Credit Union
Best 10-Year CD : Apple Federal Credit Union
Frequently Asked Questions
What Is a Credit Union?
How Do Credit Unions Differ From Banks?
Why Are Credit Union Rates So Good?
How Do CDs Work?
How Do Early-Withdrawal Penalties Work?
What Is a No-Penalty CD?
What Is a CD Ladder?
What Should You Look for in a CD?
What Are Some Alternatives to CDs?
Key Takeaways
FAQs
Which credit union has the highest CD rate? ›
- Alliant Credit Union: Rates up to 5.15%
- First Internet Bank: Rates up to 5.26%
- EverBank: Rates up to 5.05%
- Synchrony: Rates up to 4.90%
- Marcus by Goldman Sachs: Rates up to 5.00%
- MYSB Direct: Rates up to 5.20%
- TAB Bank: Rates up to 5.27%
- Capital One 360: Rates up to 5.00%
- Abound Credit Union – 5.25% APY.
- Mountain America Credit Union – 5.25% APY.
- KS State Bank – 5.25% APY.
- Forbright Bank – 5.25% APY.
- Merchants Bank of Indiana – 5.25% APY.
- Seattle Bank – 5.25% APY.
- Bread Savings – 5.25% APY.
- Utah First Credit Union – 5.25% APY.
Credit unions often pay higher rates on CDs than banks. 10 Without the need to maximize profits for outside shareholders, credit unions can maximize what they pay out in savings accounts and CDs. Plus, credit unions don't pay federal income taxes.
Is it safe to buy CD from credit union? ›CDs are one of the safest ways to store money and earn a set rate of interest, which can help you better plan your finances. CDs opened at FDIC-insured banks, or credit unions backed by the NCUA, are guaranteed by the federal government.
Can you get 6% on a CD? ›Yes, 6% APY for a CD is an excellent rate. Average CD rates are significantly lower than 6% APY.
Where can I get 7% interest on my money? ›FAQ: 7% interest savings accounts
As of June 2024, only two financial institutions offer a minimum 7% APY: OnPath Federal Credit Union has a high-yield checking account with 7% APY and Landmark Credit Union's Premium Checking has a limited APY of 7.50%.
Term Length | Average APY | Interest earned on $10,000 at maturity |
---|---|---|
1 year | 1.81% | $181 |
2 years | 1.54% | $310.37 |
3 years | 1.41% | $428.99 |
4 years | 1.32% | $538.55 |
Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.
Can you get 7% on a CD? ›Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.
What credit union is paying the highest interest? ›- America First Credit Union: 5.25% APY, $500 minimum deposit.
- Alliant Credit Union: 5.15% APY, $1,000 minimum deposit.
- Delta Community Credit Union: 5.05% APY, $1,000 minimum deposit.
- State Employees' Credit Union: 5.10% APY, $250 minimum deposit.
What is the downside of banking with a credit union? ›
Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.
What is the best credit union to bank with? ›- Alliant Credit Union. Alliant offers an above-average interest rate for savings. ...
- Consumers Credit Union. ...
- Navy Federal Credit Union. ...
- Connexus Credit Union. ...
- First Tech Federal Credit Union.
Institution | Rate (APY) | Minimum Deposit |
---|---|---|
INOVA Federal Credit Union | 5.40% | $200 |
CIBC Agility | 5.36% | $1,000 |
Mills42 Federal Credit Union | 5.35% | $500 |
Rising Bank | 5.35% | $1,000 |
CDs are good for medium-term savings goals. The best CD rates tend to be at online-focused institutions. High-yield CDs in recent years have reached 4% to 5% annual percentage yields, which might be enough to keep better pace with inflation than regular savings accounts can.
Can CD accounts lose money? ›The risk of having a CD is very low. Unlike how the stock market or a Roth IRA can lose money, you typically cannot lose money in a CD. There is actually no risk the account owner incurs unless you withdraw money before the account reaches maturity.
What credit union pays the highest interest rate? ›Institution | Rate (APY) | Term |
---|---|---|
Nuvision Credit Union | 6.00%* | 10 months |
TotalDirectBank | 5.51% | 3 months & 6 months |
My Banking Direct | 5.50% | 5 months |
INOVA Federal Credit Union | 5.50% | 6 months |
Institution | Rate (APY) | Minimum Deposit |
---|---|---|
Credit One Bank | 5.35% | $100,000 |
Third Federal Savings & Loan | 5.25% | $100,000 |
CD Bank | 5.25% | $100,000 |
Affinity Federal Credit Union | 5.25% | $50,000 |