Credit unions ‘destroy’ banks with higher CD rates, lower deposit requirements

LOS ANGELES, CA (September 26, 2013) — Following the recent Federal Reserve announcement indicating it will not begin tapering its quantitative easing program, depositors are still left with few low-risk, high-yield savings options. surveyed current CD rates to determine where high-yield opportunities exist, finding credit unions consistently outperform for-profit banks.

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“The fact is credit unions destroy banks with higher rates and lower deposit requirements,” said Casey Bond, managing editor of “There are definitely better deals on the local level in general, but right now, even community banks can’t keep up with the savings credit unions are providing members.”

Average CD Rates by Institution Type

CD Term National Banks Credit Unions
6-Month 0.19% APY 0.17% APY 0.28% APY
12-Month 0.30% APY 0.27% APY 0.42% APY
24-Month 0.46% APY 0.43% APY 0.62% APY

Average CD Minimum Deposit Requirement by Institution Type

CD Term National Banks Credit Unions
6-Month $3,467 $3,678 $2,435
12-Month $3,380 $3,572 $2,401
24-Month $3,415 $3,592 $2,499

Quick Facts

  • Credit union CD rates are approximately .10% to .20% percent higher than bank rates on average.
  • The average minimum deposit requirement for CDs offered by credit unions is $1,093 – $1,243 less than that of banks, depending on term length.

Highest CD Rates   

Institution State Term APY
Hanscom Federal Credit Union* MA 12-Month CD 3.00% APY
America’s Credit Union WA 12-Month CD 1.51% APY
Montauk Credit Union NY 24-Month CD 1.50% APY
Kauai Community Federal Credit Union HI 24-Month CD 1.40% APY
Service Credit Union MA 6-Month CD 1.35% APY
AmeriCU Credit Union NY 24-Month CD 1.35% APY
Idaho Central Federal Credit Union ID 24-Month CD 1.31% APY
Navigator Credit Union MS 24-Month CD 1.30% APY
American Airlines Federal Credit Union NC 24-Month CD 1.26% APY

* Hanscom’s CU Thrive automatic savings program is categorized as a CD due to the fact it has a fixed term and rate.

About This Survey
Data referenced in this study is compiled from the database, which is powered by Informa Research Services, Inc., which aggregates rates from more than 4,000 financial institutions. Approximately 11,200 CD accounts were reviewed and rates belonging to online-only banks were omitted. All rates are accurate as of Sept. 23, 2013, and based on a depositor with $10,000 available to invest.

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About ( is a personal finance website that connects consumers with the best interest rates nationwide.’s editors have been featured on several top media outlets such as U.S. News, Yahoo! Finance, Forbes, The Street, Huffington Post and more.

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