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 Aug. 30, 2024. Best Credit Union CDs Best Credit Union CDs Frequently Asked Questions Financial Partners Credit Union has branches only in California, but it has more than 80,000 members and $1.5 billion in assets. It offers a wide range of banking services, including loans, insurance, investments, savings accounts, checking accounts, and even a car-buying service—but CDs are where this credit union really shines. To join the credit union, join the American Consumer Council (for as little as $8) and keep at least $25 in a savings account. 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. 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. INOVA Federal offers personal and business accounts, loans, credit cards, insurance products, and CDs with terms from 30 days to six years. Mountain America Credit Union was established in the 1930s and has numerous branches throughout Arizona, Idaho, Montana, Nevada, New Mexico, and Utah. In addition to CDs, it offers standard personal and business banking products including checking and savings accounts, mortgages, and other lending options. Membership is available to those who live in areas served by MACU’s branches or through several affiliated organizations, including the American Consumer Council. Members can open and manage accounts online or through an app for Android and Apple devices. FedChoice Federal Credit Union was founded in 1935 by a group of IRS agents. It has since grown to have over 25,000 members and over $425 million in assets. FedChoice offers a variety of banking products like checking and savings accounts; high-yield CDs; credit cards; and various loans. You can join FedChoice online with a $5 opening deposit. Lafayette Federal Credit Union is based out of Rockville, Maryland, and it operates just eight branches scattered around the Washington D.C. area. It’s a full-service credit union, and you can choose from variable-rate and fixed-rate certificates depending on what tickles your fancy. If you don’t qualify for membership through other means (such as living in the area or working for certain employers), you also can become a member by first joining the Homeownership Financial Literacy Council for $10. You also must keep a $50 balance in a savings account. EFCU Financial was established in Baton Rouge, Louisiana, in the 1930s as the 13th federal credit union in the U.S. It began with 178 members and $941.70. After several name and affiliation changes since its beginnings, it took its current name in 2015. The credit union has eight branches in the Baton Rouge area, but membership is available nationwide with online and mobile banking and access to shared branches through the CO-OP Shared Branch Network and ATMs through the Allpoint network. Pima Federal Credit Union was founded in Tucson, Arizona, in 1951. It offers all standard banking products. Anyone can join Pima by making a $20 donation to one of their affiliated nonprofits and keeping at least $5 in a Pima savings account. 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. 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." INOVA Federal. "About INOVA." 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 September 2024
Term Credit Union APY Minimum Deposit Early Withdrawal Penalty 3 Months (2–4 months included) Financial Partners Credit Union (4 months) 5.25% $1,000 3 months of interest 6 Months (5–9 months included) INOVA Federal Credit Union (5 months) 5.40% $200 90 days of dividends 1 Year (10–14 months included) Mountain America Credit Union 5.25% $500 3 months of interest 18 Months (15–20 months included) FedChoice Federal Credit Union (15 months) 5.25% $500 4 months of interest 2 Years (21–29 months included) Lafayette Federal Credit Union 4.78% $500 9 months of interest 3 Years (30–41 months included) EFCU Financial 4.65% $500 6 months of interest 4 Years (42–53 months included) Pima Federal Credit Union 4.50% $250 50% of unpaid dividends 5 Years (54–66 months included) Pima Federal Credit Union 4.50% $250 50% of unpaid dividends 10 Years (114–120 months included) Credit Human 4.00% $500 Greater of $50 or 1,095 days of interest Best 3-Month CD : Financial Partners Credit Union
Best 6-Month CD : INOVA Federal Credit Union
Best 1-Year CD : Mountain America Credit Union
Best 18-Month CD : FedChoice Federal Credit Union
Best 2-Year CD : Lafayette Federal Credit Union
Best 3-Year CD : EFCU Financial
Best 4-Year and 5-Year CDs : Pima Federal Credit Union
Best 10-Year CD : Credit Human
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
