New study finds credit unions face stiff competition from online savings accounts

by. Missy Baxter

Credit unions are having a tough time keeping up with some of the benefits offered by online savings accounts, according to a new study by, a personal finance website that claims more than 2 million unique impressions each month.

The study noted that online savings accounts and certificates of deposit (CDs) offer significantly higher yields and require lower minimum deposits, on average, than banks and credit unions offering traditional, offline accounts, the study said.

Online savings account rates are 618 percent higher and online CDs are 58 percent higher than traditional versions of the same products, according to the study. However, conventional checking and money market accounts offer equal or higher yields and lower minimum deposits than online versions of the accounts, on average, said GoBankingRates.

To compete with online savings options, the company said, a growing number of traditional, brick-and-mortar banks and credit unions now provide online-only accounts in addition to their conventional options — but with the option to visit a branch.

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