Credit Unions 'Destroy' Banks with Higher CD Rates, Lower Deposit Requirements
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 |
- 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 |
|
|
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
[email protected]
310.297.9233 x112
SOURCE GoBankingRates.com
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