With numerous credit unions vying for attention, identifying those with the most attractive CD rates can be a challenging task.
In this article, we present a comprehensive list of six credit unions that stand out for their highly competitive CD rates. These institutions not only offer attractive interest rates but also prioritize customer satisfaction and financial security.
Navy Federal Credit Union
APY Range
Minimum Deposit
Terms
Fees
Navy Federal Credit Union offers different options for certificates with varying terms and interest rates, so you can choose the one that suits your savings goals. Apart from certificates, they also provide other savings and investment products like savings accounts, money market accounts, and individual retirement accounts (IRAs).
Certificate Term | Navy Federal APY |
|---|---|
3 Months | 2.75% – 2.80% |
6 Months | 0.45% – 0.50% |
12 Months | 4.80% – 4.85% |
18 Months | 4.50% – 4.55% |
24 Months | 4.20% – 4.25% |
36 Months | 4.00% – 4.05% |
60 Months | 3.80% – 3.85% |
84 Months | 3.80% – 3.85% |
15 Months (Special CD) | 4.85% |
Navy Federal Credit Union is a non-profit organization based in Virginia, and it's one of the largest credit unions in the US. They mainly serve members of the military and their families, and they have a whopping 9 million members worldwide.
Connexus Credit Union
APY Range
Minimum Deposit
Terms
Fees
You can choose from different options when it comes to Connexus CDs or Share certificates. These are like savings accounts that you put money into for a certain period of time, ranging from 12 months – 5 years. They offer a special CD and Jumbo CDs as well.
Another option is the Bump Up CD – with the Bump Up CD, you can increase your interest rate once during the term.
CD Term | APY |
|---|---|
12 Months | 4.91% – 4.96% |
15 Months (special) | 5.00% – 5.10% |
24 Months | 4.53% – 4.58% |
36 Months | 4.11% – 4.16% |
48 Months | 3.81% – 3.86% |
60 Months | 3.41% – 3.46% |
Connexus provides a convenient way to open an account online. All you need to do is follow a few simple steps on the relevant product page, and you'll be good to go.
Pen Fed Credit Union
APY Range
Minimum Deposit
Terms
Fees
PenFed has a wide range of CDs and they are competitive for almost every term. They usually offer higher interest rates compared to regular savings accounts, but you need to deposit a certain minimum amount to open one.
Term | APY | Penalty |
|---|---|---|
6 Months | 3.00% | 90 days of dividends |
12 Months | 4.00% | 365 days / 30% of dividends |
18 Months | 4.00% | 365 days / 30% of dividends |
24 Months | 4.00% | 365 days / 30% of dividends |
36 Months | 3.40% | 365 days / 30% of dividends |
48 Months | 3.20% | 365 days / 30% of dividends |
60 Months | 3.20% | 365 days / 30% of dividends |
84 Months | 3.00% | 365 days / 30% of dividends |
PenFed is a Credit Union that started back in 1935 and now operates all around the world. Initially, it was only available to military and civilian government employees and their families. However, they have expanded and now have a national membership charter, so anyone can join and become a member.
Lafayette Federal Credit Union
APY Range
Minimum Deposit
Terms
Fees
Lafayette Federal Credit Union offers highly competitive rates compared to other credit unions and banks. As of September 2024, their 1-year CD rates are among the highest 1-year CD rates in the market, and their rates for other terms are also very competitive.
Term | APY |
|---|---|
7 Months | 4.37% |
12 Months | 5.04% |
24 Months | 4.78% |
36 Months | 4.52% |
48 Months | 4.42% |
60 Months | 4.32% |
You can join Lafayette Federal Credit Union (LFCU) in various ways. Firstly, if you belong to a participating organization such as a school, business, or union, you can join LFCU without cost. Secondly, if you live, work, or worship in Maryland, Washington, D.C., or Virginia, you can join LFCU by paying a one-time fee of $5. Lastly, if you are the spouse, child, or parent of an existing LFCU member, you can join for free.
Air Force Federal Credit Union
APY Range
Minimum Deposit
Terms
Fees
AFFCU offers certificate rates that are very competitive when compared to other credit unions. In fact, their rates are often among the highest in the country.
Term | APY |
|---|---|
6 Months | 4.15% |
12 Months | 4.60% |
18 Months | 4.25% |
24 Months | 4.10% |
36 Months | 4.00% |
60 Months | 3.80% – 3.85% |
72 Months | 3.70% – 3.75% |
Air Force FCU primarily serves military personnel and their families. Eligibility includes current or retired U.S. military members, civilian employees of the Department of Defense, immediate family members of current AFFCU members, and anyone who donates $10 or $25 to specific foundations.
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Alliant Credit Union
APY Range
Minimum Deposit
Terms
Fees
Alliant Credit Union provides certificates with competitive rates that vary based on the chosen term. Their rates are highly competitive nationwide, covering a wide range of available terms. If you have the ability to deposit over $75,000, Alliant offers the option to open a jumbo certificate.
Term | APY |
|---|---|
3 Months | 4.25% |
6 Months | 4.75% |
12 Months | 4.75% |
18 Months | 4.40% |
24 Months | 4.20% |
36 Months | 4.05% |
48 Months | 4.00% |
60 Months | 4.00% |
To open an Alliant certificate account, there are three convenient options available. If you are already an Alliant member, you can log in to your online banking account and follow the prompts to open a certificate account.
If you are a new member, you can start the membership application process online and select “Certificates” as the account type.
How To Choose A CD From A Credit Union?
When choosing a CD from a credit union, there are several factors you should consider. Here are some important ones:
Membership Eligibility: Credit unions have membership requirements, such as belonging to a particular community, occupation, or organization. Ensure you meet the eligibility criteria to become a member of the credit union you are considering. There are credit unions on the list that are open to everyone.
Penalties for Early Withdrawal: Understand the penalties imposed if you need to withdraw the funds from the CD before its maturity date. Early withdrawal penalties can eat into your earnings or even result in a loss of principal. Ensure you know these penalties and consider the potential need for liquidity during the CD's term.
- Credit Union's Reputation and Stability: Examine the credit union's financial health and stability. Review their financial statements, including their assets, liabilities, and capital reserves. Look for a credit union with a strong balance sheet and a history of stable financial performance. Check if the credit union is federally insured by the National Credit Union Administration (NCUA) or if it has private deposit insurance to protect your funds.
- Customer Service: Evaluate the credit union's customer service quality. Good customer service can make a difference in your overall experience and address any concerns or inquiries you may have during the CD's term.
FAQs
What happens if a credit union fails while my certificate is active?
If a credit union fails, your credit union certificate is protected by the NCUA insurance, which covers up to $250,000 per account. The NCUA will typically work to transfer your accounts to another insured credit union to ensure the continuity of your funds
Can I use credit union certificates for retirement savings?
Yes, credit union certificates can be used as a part of your retirement savings strategy. Some credit unions offer specialized retirement certificates or Individual Retirement Accounts (IRAs) that provide tax advantages for long-term savings.
Are credit union certificates taxable?
Yes, the interest earned on credit union certificates is generally taxable as income. You will receive a Form 1099-INT from the credit union, which reports the interest earned and must be included in your annual tax filings.
What are the advantages of credit union certificates?
Some redit union certificates often offer higher interest rates compared to regular savings accounts or traditional bank CDs.
What happens when a credit union certificate matures?
When a credit union certificate matures, you have several options. You can withdraw the funds, renew the certificate at the prevailing interest rate, or transfer the funds to another account or investment product within the credit union.
