Credit unions tend to offer consumers better rates, and lower fees, than traditional brick-and-mortar banks. Why not take advantage of that and look for the best credit union CD rates? While credit union CDs are called “share certificates” and the interest they earned is called “dividends,” they are functionally the same.
Account details and annual percentage yields (APYs) are accurate as of August 9, 2024.
Best credit union CD rates
- Alliant Credit Union share certificates.
- NASA Federal Credit Union share certificate.
- CommunityWide Federal Credit Union CW certificate account.
- Connexus Credit Union share certificates.
- State Department Federal Credit Union share certificates.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 140 CDs from 84+ financial institutions reviewed.
- 4 levels of fact checking.
- 50+ data points analyzed.
CommunityWide Federal Credit Union CW certificate account
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual percentage yield
4.00% to 5.25%
Terms
6 to 60 months
Minimum deposit requirement
$1,000
What should you know
Among the credit union’s offerings, its six-month certificate with a 5.25% APY may be your best option. The six-month term is followed by two certificates with yields above 5.00% APY: the 12-month and 18-month terms.Other terms (24-, 36-, 48- and 60-months) provide APYs from 4.00% to 4.50%. All terms have a required minimum balance of only $1,000.The early withdrawal penalty requires you to do a bit of math to figure out. You multiply the amount you withdraw by how many days are left on the certificate, then multiply that by two times the certificate rate divided by 365. Basically, you pay double the dividends you would have earned if you didn’t make the withdrawal. This is a strong encouragement to keep your funds in the certificate for as long as possible, if not the whole term.To be eligible for credit union membership, you can donate to one of several organizations, including the Hope Rescue Mission (a homeless shelter), Goodwill Industries of Michiana, Inc., Habitat for Humanity and the Y.M.C.A.
Compare the best credit union CDs
| CREDIT UNION | STAR RATING | APY | TERMS (MONTHS) | MIN. DEPOSIT | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
 | 5 | 3.95% to 5.20% | 6 to 60 | $1,000 or $10,000 | ||||||
| ||||||||||
 | 4.46 | 4.00% to 5.25% | 6 to 60 | $1,000 | ||||||
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 | 4.45 | 3.41% to 5.15% | 12 to 60 | $5,000 | ||||||
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 | 4.42 | 4.00% to 4.75% | 3 to 60 | $1,000 | ||||||
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 | 4.35 | 4.16% to 4.99% | 6 to 60 | $500 | ||||||
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Methodology
APY: 70%
Unlike seashells, figurines and other knick knacks, you don’t purchase CDs because they look pretty. The point of getting a CD is to earn a guaranteed yield in an extremely safe deposit vehicle.
While one traditional CD is much like another, the main differentiation is in the yields they offer. The higher, the better.
We weighed APY as the heaviest factor by far in our methodology to determine the best credit union CD.
Customer service and digital experience: 12%
When you deposit potentially thousands of dollars into an account, how you’re able to interact with that account matters. We considered customer service hours, industry ratings from J. D. Power, the Better Business Bureau and Trustpilot, and customer app ratings.
Minimum deposit requirement: 8%
Buying CDs takes a backseat to purchasing housing, food, utilities and other necessities. It should even come after establishing your emergency savings fund. As such, if and when you do want a CD, it should be affordable.
We rewarded credit union CDs with relatively low minimum deposit requirements by rating them higher.
Available terms and availability: 6%
Many savers don’t want just one CD. Getting multiple CDs for various terms can be a great savings strategy. We considered how many CDs each financial institution offered and the range of terms.
We also took into account how widely available the CDs were. For example, if you live in New Jersey, learning about a credit union CD that’s only available in California isn’t helpful.
Compound interest schedule: 4%
The faster your CD compounds, the more money it’ll earn. While the delta between a monthly and a daily compounding rate can be only a few cents on short-term CDs with a small amount, it can increase when the CD is longer-term with a larger amount.
We prioritized CDs with daily compounding interest schedules over ones with slower rates.
Why some credit unions weren’t chosen
Some of the most well-known credit unions aren’t on our list because they don’t offer the most competitive CD rates.
Many smaller institutions offer high yields to draw in new members and their deposits. The larger ones that already enjoy a wide membership base, a lot of assets, plus the benefits of being top-of-mind when people consider credit unions, don’t feel the need to offer the best rates.
Credit union vs. bank CDs: Is there a difference?
While there are small differences between credit union certificates and bank CDs, they’re essentially the same thing. Both are deposit accounts that allow you to earn a fixed rate on an initial deposit over a specific period of time. Both offer varying terms, interest rates, required minimum deposits and withdrawal penalties. Both can offer different types of CDs, including traditional and no-penalty CDs.
The differences are minimal, but there are a few things to be aware of. First of all, the wording differs. CDs offered by credit unions are generally called “certificates” or “share certificates.”
Secondly, you must be a member of a credit union.
“The big difference between credit unions and banks is that credit unions are not-for-profit institutions that are member-owned, while banks are for-profit companies,” said Robin Hartill, a CFP based in Florida.
Because credit unions are nonprofits, you can’t be a customer, but can be a member.
This has other benefits.
Whereas banks need to earn a profit for shareholders, credit unions can pass on those savings to their members. This means you could find higher yields at credit unions.
In the downside category, however, membership is often limited to a specific group of people, like military families or employees in a particular industry. This can, in turn, restrict who can get a certificate. With the combination of low profits and limited membership, credit unions tend to have a more sparse suite of products and services, though this isn’t true for everyone.
Finally, credit union certificates and bank CDs are insured by different federal organizations. Credit union certificates are guaranteed by the National Credit Union Administration (NCUA), while bank CDs are covered by the Federal Deposit Insurance Corporation (FDIC). Both gave deposit coverage of $250,000 per depositor, per ownership type, per institution.
Finding the best CD rates from a credit union
Certificate rates vary widely, even within a single credit union, based on the length of the specific term, how large the CD is and the type of CD. To find the highest yields, you’ll need to do your research and compare your options.
As you research, remember that you must be a credit union member to open a certificate. Some credit unions have specific membership eligibility criteria based on geographic location, profession or some other type of affiliation. When shopping for rates, check first to see if you qualify for membership at a specific credit union. If you don’t, there’s no point in researching their yields.
A list of the best credit union certificates is a great place to find the highest rates. But when you’re comparing these accounts, you should also consider factors like the term length, minimum deposit amount and penalties for early withdrawal. The account with the best rate may have a minimum deposit requirement that’s unrealistic for you. Or, it’s possible the available terms don’t line up with your financial goals.
If no single CD matches everything you want — you could use a CD ladder, getting a few CDs to satisfy your needs. Here are the best CDs based on the term:
- Best three-month CDs.
- Best six-month CDs.
- Best one-year CDs.
- Best three-year CDs.
- Best five-year CDs.
- Best 10-year CDs.
Once you’ve identified a credit union that offers certificate(s) that work for you, be sure to read the fine print and understand all the account’s details. Make sure the CDs you’re considering not only offer a good rate but have terms, requirements and conditions that you’re willing and able to meet.
Alternatives to credit union CDs
While credit unions offer a wide variety of certificates with different terms and interest rates, they aren’t the only place to look for a deposit vehicle. If you’re looking for an alternative, you can always look to banks or other financial institutions.
You can shop for a CD at a bank or at an investment broker, including some big names like Charles Schwab and Fidelity. And these institutions don’t generally limit membership, meaning you won’t face eligibility requirements when it comes to opening an account.
Pay special attention to online banks, which usually offer more favorable rates as a result of not having to pay overhead costs.
You can use our CD calculator to see how much you’d earn.
You can also consider other types of deposit accounts.
“High-yield savings accounts or money market accounts are good options,” said Hartill.
If you’re looking for a CD alternative but want to keep banking at a credit union, these could be a great choice.
High-yield savings accounts can offer on par with CD rates. Plus, they provide you the added flexibility of being able to withdraw your money at any time.
Frequently asked questions (FAQs)
Yes, as long as the credit union is insured by the National Credit Union Administration (NCUA). Just like the Federal Deposit Insurance Corporation (FDIC) insures bank deposits up to $250,000, the NCUA protects deposit accounts at credit unions up to $250,000. Deposits up to this amount at both types of institutions are backed by the U.S. government. However, it’s important to note that deposits at credit unions without NCUA insurance are not federally insured.
Generally, you can find certificate terms that range from six to 60 months at both banks and credit unions, but it depends on the institution. Some offer terms with an unusual amount of months (such as a 15-month special certificate); others can offer even shorter terms (as low as 28 days) and some offer longer (as high as ten years).
Credit unions are not-for-profit financial institutions that are able to pass on profits to their members, who are also the owners. Compared to for-profit banks, credit unions are usually able to offer lower fees and higher savings rates. Credit unions also tend to serve particular audiences; whether that be a specific geographical region, a certain profession, or members of a particular organization. For this reason, and the fact that credit unions are usually smaller and more regional than banks, credit unions can offer more personalized service.
Among our picks for the best credit union CDs, CommunityWide FCU currently has the highest yield.
