Where to Find the Best Credit Union CD Rates

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10 Credit Unions with the Best CD Rates

Are you a retirement-age saver looking for the best CD rates? If so, you might want to consider credit unions. Credit unions can offer higher CD rates than banks, making them a great choice for retirees who want to earn more on their savings.

In this article, we’ll explain what CD rates are and why credit unions can be a good choice for your CDs. We’ll also share a list of the top credit unions with the best CD rates, along with tips for maximizing your CD returns.

What are CD rates?

CD rates, or certificate of deposit rates, are the interest rates paid on CDs. CDs are a type of savings account that pays a fixed interest rate for a fixed period of time. CD rates are usually higher than savings account rates because you’re committing to keep your money in the CD for a set period of time.

Compared to other types of savings accounts, CDs are a good choice for retirement-age savers because they offer a fixed rate of return and are FDIC-insured up to $250,000.

Why choose a credit union for your CD?

Credit unions are not-for-profit financial institutions owned by their members. This means they can offer higher CD rates than banks because they don’t have to generate profits for shareholders.

Credit unions also tend to have lower fees and better customer service than banks, making them a popular choice for savers who want to earn more on their savings and get better service.

Top credit unions with the best CD rates

If you’re looking for the best CD rates, here are some credit unions you might want to consider:

  • Navy Federal Credit Union – offers high CD rates with terms ranging from 3 months to 7 years.
  • Alliant Credit Union – offers competitive CD rates with terms ranging from 12 months to 60 months.
  • PenFed Credit Union – offers high CD rates with terms ranging from 6 months to 7 years
  • Connexus Credit Union – offers high CD rates with terms ranging from 12 months to 60 months.

Each credit union has its own terms, fees, and membership requirements, so be sure to do your research before choosing one.

10 Best Credit Unions to Shop CD Rates

Credit Unions with the Best CD Rates for Retirement-Age Individuals: So, which credit unions offer the best CD rates for retirement-age individuals? Here are a few to consider:

  1. Navy Federal Credit Union: Offers a variety of CD options with competitive rates, including a special 5-year CD for IRA accounts.

  2. Pentagon Federal Credit Union: Offers high APYs on CDs with terms ranging from 6 months to 7 years.
  3. Alliant Credit Union: Offers high APYs on CDs with terms ranging from 12 months to 60 months.
  4. Discover Bank: Although not a credit union, Discover Bank offers competitive rates on CDs with terms ranging from 3 months to 10 years.
  5. Connexus Credit Union: Offers high APYs on CDs with terms ranging from 12 months to 60 months, with no minimum deposit requirement.
  6. NASA Federal Credit Union: Offers competitive rates on CDs with terms ranging from 3 months to 60 months, with a minimum deposit requirement of $5,000.
  7. State Farm Federal Credit Union: Offers high APYs on CDs with terms ranging from 1 year to 5 years, with a minimum deposit requirement of $500.
  8. Langley Federal Credit Union: Offers high APYs on CDs with terms ranging from 6 months to 60 months, with a minimum deposit requirement of $1,000.
  9. Mountain America Credit Union: Offers high APYs on CDs with terms ranging from 6 months to 60 months, with a minimum deposit requirement of $500.
  10. BCU (Baxter Credit Union): Offers competitive rates on CDs with terms ranging from 3 months to 60 months, with a minimum deposit requirement of $500.

Benefits of Shopping for CDs at Credit Unions

Credit unions are not-for-profit financial institutions that are owned by their members. This means that they often offer lower fees and better interest rates than traditional banks. This can be especially beneficial as it allows you to maximize your savings and earn more on your investments. 

Additionally, credit unions often offer personalized customer service and are more focused on the needs of their members.

Understanding CD Rates and Why They Matter:

CDs, or certificates of deposit, are a type of savings account that allows you to earn interest on your money over a set period of time. CD rates are the interest rates offered on these accounts, and they can vary depending on the credit union and the term length of the CD. 

CD rates are important for retirement age individuals because they offer a secure way to invest your money while earning a fixed rate of return.

Our Methodology

The methodology used to create the list of 10 credit unions with the best CD rates includes the following steps:

Research: We gathered data from multiple sources, including Bankrate, NerdWallet, MyBankTracker, DepositAccounts, and Forbes Advisor, to compare CD rates at different credit unions.

Rate comparison: We compared the CD rates offered by different credit unions, with a focus on 5-year CDs as they tend to have the highest rates.

Minimum deposit requirement: We looked at the minimum deposit requirement for each CD and ensured that it was affordable for most savers.

Terms: We considered the terms offered by each credit union and looked for a range of options to accommodate different saving goals.

Reputation: We also looked at the reputation of each credit union and considered factors such as customer reviews, financial stability, and credit rating.

Based on the above criteria, we compiled a list of the 10 credit unions with the best CD rates as of May 2023. However, readers are encouraged to do their own research and consider their personal financial goals and circumstances before making any investment decisions.

How to Choose the Right Credit Union for Your Retirement Savings

When choosing a credit union for your CD investment, there are several factors to consider. Here are some questions to ask yourself before making a decision:

  1. What is the minimum deposit required?
  2. What is the interest rate?
  3. What is the investment term?
  4. What are the penalties for early withdrawal?
  5. Does the credit union offer any special promotions or perks for CD investors?

To research and compare CD rates at different credit unions, use online comparison tools and check out each institution’s website. You can also contact a representative at the credit union for more information.

Conclusion

Investing in a CD at a credit union is a great way to grow your retirement savings without taking on too much risk. By choosing a credit union with competitive rates and favorable terms, you can maximize your earnings and enjoy peace of mind knowing your money is safe and secure. Start researching today to find the best credit union for your needs.

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