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Credit Unions 'Destroy' Banks with Higher CD Rates, Lower Deposit Requirements

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GoBankingRates.com is a personal finance website that connects consumers with the best interest rates nationwide. (PRNewsFoto/GoBankingRates.com)

LOS ANGELES, Sept. 26, 2013 /PRNewswire/ -- 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. GoBankingRates.com surveyed current CD rates to determine where high-yield opportunities exist, finding credit unions consistently outperform for-profit banks.

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See the full study here http://bit.ly/16AMDpQ.

"The fact is credit unions destroy banks with higher rates and lower deposit requirements," said Casey Bond, managing editor of GoBankingRates.com. "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

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

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.

Top 10 Highest CD Rates

Hanscom Federal Credit Union*	3.00% APY
America's Credit Union	1.51% APY
Montauk Credit Union	1.50% APY
Kauai Community Federal Credit Union	1.40% APY
Service Credit Union	1.35% APY
AmeriCU Credit Union	1.35% APY
Idaho Central Federal Credit Union	1.31% APY
Navigator Credit Union	1.30% APY
American Airlines Federal Credit Union	1.26% APY
Regal Bank	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 GoBankingRates.com 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.

To see the full study, visit http://bit.ly/16AMDpQ.

About GoBankingRates.com

GoBankingRates.com (http://www.gobankingrates.com/) is a personal finance website that connects consumers with the best interest rates nationwide. GoBankingRates.com's editors have been featured on several top media outlets such as U.S. News, Yahoo! Finance, Forbes, The Street, Huffington Post and more.

Contact:

Connie Lundegard
PR@GoBankingRates.com
310.297.9233 x112

SOURCE GoBankingRates.com

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