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The Best Credit Union CD Rates – January 2019

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The top credit union CD rates
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Certificates of deposit (CDs) are a great way to safely store your savings at a financial institution, as they offer a guaranteed rate of return, and CD rates tend to be higher than those on traditional savings accounts. Maybe you’ve even heard that credit union CD rates offer higher returns—but is that really the case?

On average, yes. As of September 2018, the average one-year credit union CD had a 1.10% annual percentage yield (APY), compared to the 0.87% APY average among one-year bank CDs.

Using data from DepositAccounts.com, another LendingTree company, we identified the top one-year credit union CD rates, as of January 7, 2019. We then eliminated any credit union with a health rating lower than a B and identified the top three offerings in three categories: restricted, no cost, and best banking app. If there was a tie by APY, we went with the product with the lower minimum deposit. Here are the best one-year credit union CD rates.

Best CD rates for credit unions with no cost to join

The thing about credit unions is that they’re not usually just open to anyone. You usually need to meet some membership criteria in order to get in and get access to all of their really nice products. These credit unions, however, will let you in for free regardless of your personal details. (Note: Only two credit unions met our criteria for this list.)

Unify Financial Credit Union –1-Year Share Certificate, 1.75% APY, min. deposit $1,000

UNIFY Financial Credit Union
Unify FCU offers the highest interest rates on CDs (which it calls share certificates) of any credit union with no cost to join. The interest rate on their 12-month CD, for example, is 1.75%, compared to the national average of 0.92% in June. You would earn $17.50 on a $1,000 deposit. If you withdraw your money early, however, you’ll face a penalty of 90 days’ worth of interest.

LEARN MORE Secured

on UNIFY Financial Credit Union’s secure website

NCUA Insured

NASA Federal Credit Union –1-Year Share Certificate, 1.25% APY, min. deposit $1,000

NASA Federal Credit Union
If the rigid inflexibility of CDs makes you leery, NASA FCU might be your best bet. They have a lot of flexible certificates, such as add-on certificates that let you start with as little as $250, and bump-rate certificates that let you opt for a one-time interest rate increase if rates go up. You can even take out a loan from your certificate should you need the cash before it’s matured. You can join NASA FCU with a complimentary membership to the National Space Society.

If you do need to make an early withdrawal, you will face a penalty of 180 days’ worth of interest.

LEARN MORE Secured

on NASA Federal Credit Union’s secure website

NCUA Insured

Best credit union CD rates with restricted memberships or membership fees

Each of these credit unions have restricted membership criteria, but don’t let that scare you away. If you don’t meet their membership criteria, it’s possible to make a small donation to their charity of choice in order to become eligible for membership. Furthermore, these credit union CD rates offer some of the highest-returning share certificates out of any category.

USAlliance Financial – 12 Month CD, 2.80% APY, min. deposit $500

USALLIANCE Financial
Membership to USAlliance Financial is open to anyone who lives, works or worships in certain counties of Massachusetts, the city of West Haven, Conn., and a few districts in New York. However, if you don’t qualify by location, you can qualify by giving USAlliance authorization to make you a member of various organizations, including the American Consumer Council, if you aren’t already a member of these organizations. Keep in mind that these organizations may request fees.

Once you’re a member of USAlliance Financial, you can open a 12-month CD with a great rate of 2.80% by depositing a minimum of $500. Their early withdrawal penalty equals 180 days’ worth of interest earned on the amount you withdraw.

LEARN MORE Secured

on USALLIANCE Financial’s secure website

NCUA Insured

Partner Colorado Credit Union – 12 Month CD Special, 2.80% APY, min. deposit $500

60 Month CD Special from Partner Colorado Credit UnionMembership to Partner Colorado Credit Union is open to anyone willing to donate $5 to the Partner Colorado Foundation. The credit union will help you make the donation when you’re ready to open an account. You may want to first find out if you’re eligible through the other fields of membership prior to opening an account.

Once you’re a member of Partner Colorado Credit Union, you can open the 12-month CD Special with a minimum of $500. Their early withdrawal penalty is 90 days interest.

LEARN MORE Secured

on Partner Colorado Credit Union’s secure website

NCUA Insured

PenFed Credit Union – 1-Year Money Market Certificate, 2.80% APY, min. deposit $1,000

PenFed Credit Union
PenFed has an outstanding APY of 2.80%. With a minimum deposit of $1,000, you could earn $24.50 in one year. Interest is compounded daily and posts to accounts monthly. However, be aware of the steep early withdrawal penalty. If you withdraw funds before the year is up, you may forfeit all interest accrued up to that point.

Eligibility for this credit union is mainly based on military status, governmental employment status, affiliation with certain associations and organizations or relation to eligible members. However, if you don’t qualify through those criteria, getting a membership to this credit union is not difficult if you’re willing to pay a one-time fee of $17 to either Voices for America’s Troops or the National Military Family Association.

LEARN MORE Secured

on PenFed Credit Union’s secure website

NCUA Insured

Connexus Credit Union –12 Month Certificate, 2.80% APY, min. deposit $5,000

12 Month Certificate from Connexus Credit Union With a $5 donation to the Connexus Association, anyone can join Connexus Credit Union. The Connexus Association assists educational institutions by providing scholarships and financial information. Once you become a member of the credit union, you’ll be able to open their 12 month CD with a $5,000 deposit.

If you’re able to deposit $5,000 into Connexus’s 12 month CD, you’ll earn $140 by the end of the term. However, if you withdraw funds early, you’ll be penalized with 90 days’ worth of interest.

LEARN MORE Secured

on Connexus Credit Union’s secure website

NCUA Insured

Alliant Credit Union –12-17 Month Share CD, 2.65% APY, min. deposit $1,000

Alliant Credit Union
With a minimum deposit of $1,000, you could earn an APY of 2.65% on a 12-17 month CD. An early withdrawal penalty of 90 days’ worth of interest may be imposed if you withdraw funds prior to the CD’s maturity date.

With a $10 donation to Foster Care to Success, you can easily become a member of Alliant Credit Union. You can also become a member if you are an employee or retiree of certain organizations, related to existing Alliant members, or live or work in qualifying communities.

LEARN MORE Secured

on Alliant Credit Union’s secure website

NCUA Insured

Best CD rates for credit unions with the best mobile apps

By their very nature, CDs aren’t something that require constant attention, poking, and prodding. It’s a set-it-and-forget-it kind of a deal, so you won’t need any spiffy banking apps to use CDs.

But, if you’d like to switch all of your banking to the same institution that holds your CDs, it might be a wise idea to consider one of these credit unions if you’re a digital junkie. Most credit unions lag behind their bank compatriots in terms of mobile banking apps, but these credit unions offer top-notch mobile apps, according to MagnifyMoney’s 2017 mobile banking app analysis.

Redstone Federal Credit Union – 12 Month MemberPlus Regular Share Certificate, 1.99% APY, min. deposit $1,000

Redstone Federal Credit Union
You can’t just make a simple donation to join to Redstone Federal Credit Union if you fail to meet their membership criteria. You need to be a government employee or contractor, a member of the military, reserve, or National Guard, or affiliated with a number of organizations listed on their website among other options.

However, if you do qualify for membership, you could earn an APY of 1.99% with a minimum deposit of $1,000. Redstone FCU has compounding and non-compounding certificates, which allow you to have the option to withdraw interest earned or not throughout the term of the certificate.

LEARN MORE Secured

on Redstone Federal Credit Union’s secure website

NCUA Insured

Eastman Credit Union –1-Year Investment Certificate, 2.00% APY, min. deposit $1,000

Eastman Credit Union
Eastman Credit Union also has pretty restrictive membership requirements. You’ll have to be an employee (or a family member of an employee) of one of their select employers, or live in certain parts of Tennessee, Texas, or Virginia.

Eastman CU is another one of the rare credit unions that allow you to withdraw your dividends penalty-free before the maturity date, although again, doing so will lower your total returns. Currently, you can earn an interest rate of 2.00% on a 12-month CD with a minimum deposit of $1,000. If you withdraw your money before the CD matures, you’ll owe a penalty fee of anywhere between seven days’ worth of dividend earnings or all of your dividend earnings.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Wright-Patt Credit Union –1-Year Certificate, 1.97% APY, min. deposit $500

Wright-Patt Credit Union
Unlike many credit unions, you can’t just make a simple donation to join Wright-Patt CU if you fail to meet their membership criteria. You need to live in certain areas of Ohio, be associated with Wright-Patterson Air Force Base, or be an employee of their select employer group, among other options.

You can earn $8.80 on a 12-month CD with just a relatively small $500 deposit. However, if you’re able to deposit $100,000 or more, you’ll earn an APY of 2.07%, which will return $1,870 in interest. Early withdrawal penalties vary depending on the original term of your CD, however they’ll be anywhere between 5-12 months’ worth of dividends.

LEARN MORE Secured

on Wright-Patt Credit Union’s secure website

NCUA Insured

Delta Community Credit Union – 1-Year Certificate, 1.60% APY, min. deposit $1,000

Delta Community Credit Union
There are many ways to join Delta Community CU, such as living in certain parts of Georgia, being a member of one of their select employers, or being a member of one of their partner organizations. Interestingly, citizens of many countries like Argentina, France, and Peru are also eligible to join.

Delta Community CU used to be the lowest-earning credit union on our list, but recently increased the APY on this product from 1.10% to 1.60%. The early withdrawal penalty is 90 days’ worth of interest on a 12-month CD.

LEARN MORE Secured

on Delta Community Credit Union’s secure website

NCUA Insured

 

3 questions to consider before opening a credit union CD

Banks are more likely to call their products certificates of deposit, while credit unions often refer to them as share certificates. Aside from the name, the biggest difference between the two is that credit unions have higher average annual percentage yields (APYs) than traditional banks, as of September 2018. That’s good news: It means more money back in your pocket when the CD matures (i.e., reaches the end of its term and is available for withdrawal).

There really is no difference in safety between depositing money in a CD with a credit union versus a bank, as long as they participate in either the National Credit Union Administration (NCUA) for credit unions, or the Federal Deposit Insurance Corporation (FDIC) for banks.

According to Neal Frankle, a Los Angeles-based Certified Financial Planner with Wealth Pilgrim, deposits of up to $250,000 per financial institution are “backed by the full faith and credit of United States Government, so it’s pretty solid.”

For the most part, choosing a CD at a bank or a credit union boils down to your preference as a consumer: Do you want to be a bank customer or a member of a credit union? Here’s a primer on the differences.

The biggest advantage of credit union CDs over bank CDs is that you can likely earn more interest. But with both products, the longer the CD term, the more interest you will earn. And with a CD laddering strategy, you can have the best of both worlds: frequent access to your money, yet you can still keep it locked away in high-interest, long-term CDs.

Beyond that, the disadvantages of opening a credit union CD are the same as if you’re opening a CD with a bank. You can’t access that money without paying an early withdrawal penalty until the CD matures. While CDs do offer some of the highest rates for any financial product you’re likely to come across at a bank or credit union, they still don’t really earn great interest. If you’re investing for the long-term (like retirement savings), your money is better invested in the riskier (but higher-earning) stock or bond market.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Earning Interest

The Best CD Rates –January 2019

Any opinions, analyses, reviews or recommendations expressed in this articles are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any lender or provider of the products listed.

The Best CD Rates
iStock

Updated January 7, 2019

If you are looking for a better yield on your savings, a high rate CD (certificate of deposit) offered by an online bank could be a good option. Internet-only banks offer much better interest rates than traditional banks. For example, a 12-month CD at Bank of America would require a $10,000 minimum deposit and would pay only 0.07%. At an online bank, you could earn 2.65% with no minimum deposit. (If you would rather get a savings account or money market with no time restriction, look at the best savings accounts or best money market accounts).

The Best CD Rates in January 2019

This list is updated monthly, and competition continues to intensify. Here are the accounts with some of the best CD rates:

Term

Institution

APY

Minimum Deposit Amount

 

1 year

Goldman Sachs Bank USA

2.75%

$500

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

2 years

ConnectOne Bank

3.15%

$500

LEARN MORE Secured

on ConnectOne Bank’s secure website

Member FDIC

3 years

Mountain America Credit Union

3.35%

$500

LEARN MORE Secured

on Mountain America Credit Union’s secure website

NCUA Insured

5 years

Northpointe Bank

3.60%

$1,000

LEARN MORE Secured

on Northpointe Bank’s secure website

Member FDIC

See a full list of the best CD rates below.

  • 6 months – 6 years: Goldman Sachs Bank USA – 0.60% APY – 3.15% APY; $500 minimum deposit

Goldman Sachs Bank USA
Our advertiser Marcus by Goldman Sachs is the online consumer bank of Goldman Sachs Bank USA (the large investment bank). Your funds are FDIC insured, and Goldman offers very competitive rates. Even better: there is only a $500 minimum deposit. So, if you don’t have enough money to meet the minimum deposit of the other banks on this list, or you are looking for another bank for your savings, GS is a good option. It also doesn’t hurt that they also offer some of the best CD rates in the market today. Here are their rates:

  • 6-month: 0.60% APY
  • 9-month: 0.70% APY
  • 12-month: 2.75% APY
  • 18-month: 2.65% APY
  • 2-year: 2.70% APY
  • 3-year: 2.75% APY
  • 5-year: 3.10% APY
  • 6-year: 3.15% APY

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

  • 3 months – 5 years: Synchrony Bank – 0.75% APY – 3.10% APY; $2,000 minimum deposit

Synchrony Bank
Synchrony used to be a part of GE, and now has an online bank that pays competitive rates. The online deposits are used to fund their store credit card portfolio – and the company is publicly traded. Your deposit will be insured up to the FDIC limit. In a rising rate environment, this is a great way to get a high interest rate without locking yourself into a long term.

  • 3-months: 0.75% APY
  • 6-months: 1.00% APY
  • 9-months: 1.25% APY
  • 12-months: 2.75% APY
  • 15-months: 2.85% APY
  • 18-months: 2.75% APY
  • 24-months: 2.90% APY
  • 36-months: 2.90% APY
  • 48-months: 3.00% APY
  • 60-months: 3.10% APY

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

  • 3 months – 5 years: Ally Bank – 0.75% APY – 3.10% APY; $0 minimum deposit (higher APY with higher deposit)

Ally Bank
Ally is one of the largest internet-only banks in the country. Ally’s former advertising campaign made it very clear: no branches = higher rates. And Ally has consistently paid some of the highest rates in the country across savings accounts, money market accounts and CDs. For savers with fewer funds, Ally is unique. There is no minimum deposit to open a CD. However, if you have more money, you can earn a higher APY. If you have more than $25,000 to deposit, you can earn between 0.75% APY and 3.10% APY. And one of our favorite features of Ally: they often (although not always) offer preferential rates on renewal. Far too often banks give the biggest bonuses to new customers, but Ally has done a good job of rewarding its existing customers. A good example of this is a 1% cash back promotion Ally is currently offering to new and existing customers. All deposits at Ally are FDIC insured up to the legal limit.

  • 3-months: 0.75% APY (less than $5k); 0.75% APY ($5k minimum deposit) and 0.75% APY ($25k minimum deposit)
  • 6-months: 1.00% APY (less than $5k); 1.00% APY ($5k minimum deposit) and 1.00% APY ($25k minimum deposit)
  • 9-months: 1.25% APY (less than $5k); 1.25% APY ($5k minimum deposit) and 1.25% APY ($25k minimum deposit)
  • 12-months: 2.75% APY (less than $5k); 2.75% APY ($5k minimum deposit) and 2.75% APY ($25k minimum deposit)
  • 18-months: 2.50% APY (less than $5k); 2.65% APY ($5k minimum deposit) and 2.70% APY ($25k minimum deposit)
  • 3-year: 2.60% APY (less than $5k); 2.70% APY ($5k minimum deposit) and 2.75% APY ($25k minimum deposit)
  • 5-year: 3.10% APY (less than $5k); 3.10% APY ($5k minimum deposit) and 3.10% APY ($25k minimum deposit)

LEARN MORE Secured

on Ally Bank’s secure website

Member FDIC

  • 6 months – 7 years: PenFed Credit Union – 2.40% APY – 3.50% APY, $1,000 minimum deposit

12 Month Money Market Certificate from PenFed Credit UnionPenFed is a credit union that offers very competitive interest rates. You need to join the credit union in order to benefit from their products. If you have a military or government affiliation, it is free to join. Otherwise, you would need to join an organization like Voices for America’s Troops, which costs $17.00. Once you are a member, you can open PenFed products (including this certificate) online. Your deposit would be insured by the NCUA, which is the National Credit Union Administration. There is a $1,000 minimum deposit for the one-year certificate.

  • 6-months: 2.40%
  • 12-months: 2.80%
  • 15-months: 2.90%
  • 18-months: 2.95%
  • 2-years: 2.95%
  • 3-years: 3.05%
  • 4-years: 3.15%
  • 5-years: 3.50%
  • 7-years: 3.50%

LEARN MORE Secured

on PenFed Credit Union’s secure website

NCUA Insured

  • 6 months – 5 years: Capital One – 0.60% APY – 3.10% APY; no minimum deposit

12 Month 360 CD from Capital OneCapital One is famous for its credit card business. However, it has recently started getting aggressive with its CD rates. There is no minimum deposit for their 360 CDs, which make them comparable to Barclays’ CDs. Capital One CDs are FDIC insured, up to the federal maximum. And you get the comfort of depositing your money with a well-known bank.

  • 6-months: 0.60% APY
  • 9-months: 0.75% APY
  • 12-months: 2.70% APY
  • 18-months: 2.70% APY
  • 24-months: 2.80% APY
  • 30-months: 2.80% APY
  • 36-months: 2.85% APY
  • 48-months: 2.90% APY
  • 60-months: 3.10% APY

LEARN MORE Secured

on Capital One’s secure website

Member FDIC

  • 1 year – 5 years: Barclays Bank – 2.65% – 3.10% APY, no minimum deposit

12 Month Online CD from Barclays Barclays is one of the oldest banks in the world. Although they’re based in London, they do have a U.S. presence and offer competitive rates on their CDs and savings account. Currently, they’re offering some of the highest CD rates in the market, and they have an edge over the rest of the institutions on this list: they don’t require a minimum balance to earn the APY or open an account. Deposit as little or as much as you’d like into a term of your choice and you can start earning interest as long as the account is funded within 14 days of opening the CD. Additionally, your funds are insured through the FDIC.

  • 1-year: 2.65% APY
  • 2-year: 2.70% APY
  • 3-year: 2.75% APY
  • 4-year: 2.85% APY
  • 5-year: 3.10% APY

LEARN MORE Secured

on Barclays’s secure website

Member FDIC

  • 6 months – 120 months: Vio Bank – 2.00% APY – 3.15% APY; $500 minimum deposit

12 Month High Yield Online CD from Vio BankVio Bank, a division of MidFirst Bank, is an online bank you don’t want to ignore. It launched in August 2018 with highly competitive offerings and it has continued to offer top rates on both its CDs and online savings account. While Vio Bank hasn’t been around very long, they are supported by a financial institution that is established with over $16 billion in assets. We’re extremely impressed with its early start. Here’s a full list its current CD rates:

  • 6-months: 2.00%
  • 9-months: 2.40%
  • 12-months: 2.65%
  • 15-months: 2.65%
  • 18-months: 2.75%
  • 24-months: 2.95%
  • 36-months: 3.05%
  • 48-months: 3.10%
  • 60-months: 3.15%
  • 84-months: 3.15%
  • 120-months: 3.15%

LEARN MORE Secured

on Vio Bank’s secure website

Member FDIC

  • 1-Year CD: First Internet Bank – 2.83% APY, $1,000 minimum deposit

12 Month CD from First Internet BankFirst Internet Bank was truly the first FDIC-insured online bank. Since its establishment in 1998, this online bank has acquired over $3 billion in assets. Due to its ability to do business completely online, it was able to reduce overhead costs and focus on providing its customers with truly outstanding products. Like most online banks, the benefit of low overhead is higher deposit rates! While First Internet Bank is no longer the only internet bank, it has still maintained its competitive edge by offering high rates on its deposit products. Currently, it’s offering an APY of 2.83% with a minimum deposit of $1,000. Like any good online bank, First Internet Bank has a mobile app that allows you to conveniently manage your accounts on-the-go.

LEARN MORE Secured

on First Internet Bank’s secure website

Member FDIC

  • 1-Year CD: INOVA Federal Credit Union – 3.00% APY, $200 minimum deposit

14 Month CD from INOVA Federal Credit UnionIf you’re able to become a member of INOVA Federal Credit Union, you’ll want to consider this CD with an outstanding 3.00% APY. While this CD actually has a 14-month term instead of a 12-month term, the rate is one of the highest for this range. This credit union is only available to those who are employed or are a member of the credit union’s Select Employer Groups or Organizations, or immediate family members or household members of existing members of INOVA Federal Credit Union. In order to find out what the Select Employer Groups or Organizations are, you can either check online or you’ll need to call the credit union’s customer service line. This credit union was chartered in 1942 for the employees of Miles Laboratories. It has since opened its field of membership to include the employees of over 500 other companies and organizations. To date, INOVA Federal Credit Union has acquired over $381 million in assets. Deposits made with this credit union are NCUA insured.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

  • 2-Year CD: ConnectOne Bank – 3.15% APY, $500 minimum deposit

23 Month Online CD from ConnectOne BankConnectOne Bank was established in 2005 by a man who couldn’t find a bank that satisfied his financial needs. Since the business model of the bank centered around its clients, the bank grew quickly and has acquired over $5 billion in assets to date. One way that ConnectOne Bank focuses on its clients is by offering competitive deposit rates and even offering special rates that are above what’s being offered in the market. This is evident with its 23-month online CD. For a small deposit of $500, you could earn an APY of 3.15%. You can conveniently open this CD online and all your funds are FDIC-insured.

LEARN MORE Secured

on ConnectOne Bank’s secure website

Member FDIC

  • 2-Year CD from a Credit Union: Fort Knox Federal Credit Union – 2.95% APY, $500 minimum deposit

22 Month CD Special from Fort Knox Federal Credit UnionIn 1950, civilians decided to charter Fort Knox Federal Credit Union to help each other out financially. Ten years later, the credit union opened up its field of membership to include military personnel. Today, its field of membership is open to employees of Select Employer Groups, individuals living, working, worshiping, or attending school in eligible areas, active military, Reserve, Guard, or civil service employee, retirees of the military or civil service, and contractors attached to the post. The credit union requires each member to pay a $15 fee at the time you apply for membership. Once you become a member, you can open the credit union’s 22-month CD special, which currently has an APY of 2.95%, with a minimum deposit of $500. Deposits made to this credit union NCUA insured.

LEARN MORE Secured

on Fort Knox Federal Credit Union’s secure website

NCUA Insured

  • 3-Year CD from a Credit Union: Mountain America Credit Union, 3.35% APY, $500 minimum deposit

3 Year Term Deposit from Mountain America Credit UnionMountain America Credit Union was established in the 1930s to help its members achieve their financial goals. Today, they have grown to serve hundreds of thousands of members and have acquired over $7 billion in assets. This credit union is open to Utah residents in certain areas, family members of existing members of the credit union, and employees and volunteers of a Select Employer Group. If you are a member or become a member of the American Consumer Council, you’ll qualify for membership at Mountain America Credit Union. Once you become a member, you’ll be able to open a CD. You’ll need to deposit a minimum of $500 in order to earn their outstanding 3.35% APY. Accounts can be managed online or through their mobile app. Deposits made to Mountain America Credit Union are insured by the NCUA.

LEARN MORE Secured

on Mountain America Credit Union’s secure website

NCUA Insured

  • 3-Year CD: Mainstreet Bank – 2.85% APY, $1,000 minimum deposit

3 Year CD from MainStreet Bank
Mainstreet Bank is located in Northwern Virginia and has a nationwide presence through their mobile and online banking platforms. Established in 2004, they currently have over $800 million in assets. With only a minimum of $500, you can open a 3 year CD with a 2.85% APY. All deposits made to MainStreet Bank are insured by the FDIC.

LEARN MORE Secured

on MainStreet Bank’s secure website

Member FDIC

  • 5-Year CD: Northpointe Bank – 3.60% APY, $1,000 minimum deposit

60+ Month CD Special from Northpointe BankNorthpointe Bank was founded on the principal of “real people working with real people.” In 1999, the founder of the bank didn’t want his customers’ experience to be inpersonal, so he built a bank with a set of values that focus on the customers first and foremost. As a result of this, this bank typically offers competitive rates on its banking products. If you have a minimum deposit of $1,000 to put into Northpointe Bank’s 5-year CD, you can benefit from its high rate of 3.60%. A huge downside to this account is that CDs cannot be opened online. You’ll have to call the bank to open the account if you’re not in an area that has a branch. Once you have your account opened, you can download Northpointe Bank’s mobile app to manage your account.

LEARN MORE Secured

on Northpointe Bank’s secure website

Member FDIC

  • 5-Year CD from a Credit Union: United States Senate Federal Credit Union – 3.41% APY, $1,000 minimum deposit

United States Senate Federal Credit Union

Despite what the name may suggest, you do not have to be a Senate employee to join the United States Senate Federal Credit Union. If you don’t meet the work or family qualifications, you can easily become a member by joining the American Consumer Council, Virginia Chapter (VACC) or by joining the U.S. Capitol Historical Society (USCHS). This credit union was established by nine employees of the United States Senate during the Great Depression. Since then, the credit union has grown to have over $717 million in assets.

Currently, the United States Senate Federal Credit Union is offering amazing rates on its 5-year CD. With a minimum deposit of $1,000, you can earn an APY of 3.41%. If you deposit more, the APY increases. The other tiers are as follows:

  • $20,000-$59,999.99: 3.47% APY
  • $60,000-$99,999.99: 3.53% APY

LEARN MORE Secured

on United States Senate Federal Credit Union’s secure website

NCUA Insured

3 Questions To Ask Before You Open A CD

1. Should I just open an online savings account instead?

With a CD, the saver and the bank make stronger commitments. The saver promises to keep the funds in the account for a specified period of time. In exchange, the bank guarantees the interest rate during the term of the CD. The longer the term, the higher the interest rate – and the higher the penalty for closing the CD early. With a savings account, there are few promises. You can empty the account without paying a penalty and the bank can change the interest rate at any time.

If you have a high level of confidence that you do not need to touch the money for a specified period of time, a CD is a much better deal. However, if you think you might need to use the money in the next couple of months, a savings account is a much better idea.

You can earn a lot more interest with a CD. Imagine you have $10,000 and know that you do not need to touch the money for two years. In a high-yield savings account earning 2.35%, you would earn $475.52 over two years. If you put that money into a 2.65% CD, you would earn $537.02. Given the ease of switching to an online CD, the extra interest income is easy money.

2. What term should I select?

The early withdrawal penalties on CDs can be significant. On a 1-year CD, 90 days is a typical penalty. And on 2 and 3 year CDs, a 6-month penalty is common. The impact of the penalty on your return can be significant. If you opened a one-year CD with a 2.65% APY and closed it after six months, you would forfeit half of the interest and earned only 1.32%. You would have been better off with a savings account paying 2.25%.

The worst case scenario is with the longest CDs. 5-year CDs usually have a one-year penalty for taking out funds early. If you open a 5-year CD and close it quickly, you could actually end up losing money.

Given the early penalties, you need complete confidence that you will not need to withdrawal the money early. Ask yourself this question: “do I have 90% confidence that I will not need access to the cash during the CD term?” If you don’t have confidence, go for a shorter term or a savings account.

3. Should I consider my local bank or credit union?

The interest rates shown in this article are all from online banks that offer products nationally. Our product database includes traditional banks, community banks and credit unions. If traditional banks offered better rates, they would have been featured in this article. The internet-only banks have dramatically better interest rates. That should not be surprising. Because internet-only banks do not have branches, they are able to pass along their cost savings to you in the form of higher interest rates.

However, you can always visit your local bank or credit union and ask them to beat the rates listed in this article. The chance of getting a better deal is extremely low (remember that Bank of America is only paying 0.07%), but you can try.

How To Find The Best Account

If you don’t find an account that meets your needs in this article, you can use the MagnifyMoney CD tool to find the best rate for your individual needs. Input your zip code, deposit amount and term. The tool will then provide you with CD options, from the highest APY to the lowest.

You can learn more about us and how we make money here.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Nick Clements
Nick Clements |

Nick Clements is a writer at MagnifyMoney. You can email Nick at nick@magnifymoney.com

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Best of, Earning Interest

The Best IRA CD Rates – January 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Top IRA CD rates
Source: iStock

Perhaps you’ve decided to build a CD ladder within your IRA, or maybe you’re looking for a safe way to store your retirement cash for a specific period of time. Whatever the reason, you’re interested in getting an IRA CD and, understandably, want to know what products will give you the best rate of return.

You can get an IRA CD with terms ranging from three months to more than six years, with interest rates generally increasing with the term length. There are lots of options, so we’ve rounded up the top IRA CD rates that are available right now for a variety of terms. You’ll select your IRA CD terms based on your CD-ladder master plan or whenever you’ll need access to your money.

Every month, we choose the best IRA CD rates using data from another LendingTree company DepositAccounts.com, a database of offerings at more than 17,100 banks and credit unions. On January 7, 2019, we sorted the products by APY, then eliminated institutions with a health rating below a B. We then eliminated products that are not available nationwide. From there, we chose the IRA CD with the highest APY among products with a minimum deposit no greater than $5,000. Here are the best options. (Average CD rates referenced below are based on DepositAccounts.com data as of December 6, 2018.)

The best IRA rates in January 2019

Term

Institution

APY

Minimum Deposit Amount

3 months

Bethpage Federal Credit Union

2.00%

$50

6 months

CommunityWide Federal Credit Union

2.30%

$2,000

12 months

First Internet Bank

2.83%

$1,000

18 months

First Internet Bank

2.90%

$1,000

2 years

First Internet Bank

3.03%

$1,000

3 years

Mountain America Credit Union

3.35%

$500

4 years

Georgia Banking Company

3.35%

$500

5 years

United States Senate Federal Credit Union

3.41%

$1,000

 

3 Month IRA CD – Bethpage Federal Credit Union, 3 Month IRA (Traditional, Roth)

12 Month IRA from Bethpage Federal Credit UnionThree-month regular CDs are earning an average interest rate of 0.46% APY currently. Bethpage Federal Credit Union is exceeding that, with an interest rate of 2.00% APY with their 3-Month IRA CD. You only need a small minimum deposit of $50.

LEARN MORE Secured

on Bethpage Federal Credit Union’s secure website

NCUA Insured

6-Month IRA CD – CommunityWide Credit Union, 6 Month IRA (Traditional, Roth)

Communitywide Federal Credit Union

Six-month IRA CDs typically earn a little bit better, but they’re normally still not great. CommunityWide Federal Credit Union, however, is breaking that norm by offering the highest interest rate at 2.30% APY for deposits of $2,000 and over. That translates into earnings of $22.87 if you were only to deposit the minimum amount. Compare that to the average of all regular 6 month CDs, at 0.78%.

LEARN MORE Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

1-Year IRA CD Rates – First Internet Bank, 12 Month IRA (Traditional, Roth)

First Internet Bank
Regular one-year CDs earn an average interest rate of 1.27% APY. First Internet Bank, however, is offering a one-year IRA CD at 2.83% APY. You’ll need a $1,000 minimum deposit to earn $28.90 in interest once the CD matures.

LEARN MORE Secured

on First Internet Bank’s secure website

Member FDIC

18-Month IRA CD Rates – First Internet Bank, 18 Month IRA Certificate (Traditional, Roth)

18 Month IRA from First Internet Bank18-month regular CDs earn an average interest rate of 1.49% APY. First Internet Bank on the other hand, is currently offering 2.90% APY on an 18-month IRA CD. You’ll need a minimum deposit of $1,000 to open the account.

LEARN MORE Secured

on First Internet Bank’s secure website

Member FDIC

 

2-Year IRA CD Rates – First Internet Bank, 24 Month IRA (Traditional, Roth)

24 Month IRA from First Internet BankTwo-year regular CDs earn an average interest rate of 1.60% APY. First Internet Bank, on the other hand, is currently offering 3.03% APY on a 2-year IRA CD. This would translate into earnings of $63.17 with a minimum $1,000 deposit.

LEARN MORE 

Member FDIC

3-Year IRA CD Rates – Mountain America Credit Union, 3 Year IRA (Traditional, Roth)

3 Year Term Deposit Plus from Mountain America Credit UnionThree-year regular CDs are earning an average interest rate of 1.77% APY currently. Mountain America Credit Union is exceeding that, with an interest rate of 3.35% APY with their 3-year IRA CD. You’ll need a minimum deposit amount of $500 to open this account.

LEARN MORE Secured

on Mountain America Credit Union’s secure website

NCUA Insured

 

4-Year IRA CD Rates – Georgia Banking Company, 4 Year IRA Certificate (Traditional, Roth)

Four-year regular CDs are currently earning an average interest rate of 1.92% APY. Georgia Banking Company claims the top interest rate for these IRA CDs, with an interest rate of 3.35% APY. It’s interesting enough to note that Mountain America Credit Union’s 3-year IRA is the same rate. You need a $500 minimum deposit to open this account.

on Georgia Banking Company’s secure website

5-Year IRA CD Rates – United States Senate Federal Credit Union, 60 Month IRA (Traditional, Roth, SEP)

60 Month IRA from United States Senate Federal Credit Union Five-year IRA CDs hold the top spot for interest rates out of any category on our list. National averages for a regular 5-year CD is 2.21% APY, however United States Senate Federal Credit Union outperforms the average with a 3.41% APY on its 5-year IRA CD for members. The minimum deposit is $1,000 to earn this APY, but you can earn an APY of 3.47% if you deposit a minimum of $20,000 and an APY of 3.53% if you deposit a minimum of $60,000.

LEARN MORE Secured

on United States Senate Federal Credit Union’s secure website

NCUA Insured

 

6+ Year IRA CD Rates – PenFed Credit Union, 7 Year IRA (Traditional, Roth, CESA)

7 Year IRA from PenFed Credit UnionPenFed Credit Union offers the highest term for their seven-year IRA CD, at 3.40% APY. That’s less than United States Senate Federal Credit Union which offers a 3.41% APY for a five-year IRA CD. Still, with PenFed Credit Union’s seven-year IRA CD, you would earn $263.70 on a minimum deposit of $1,000 when the IRA CD matures.

LEARN MORE Secured

on PenFed Credit Union’s secure website

NCUA Insured

3 questions to consider before opening an IRA CD

Opening an IRA CD generally requires filling out a form or talking to a banker. You’ll have to have a way to fund your IRA CD, whether that’s rolling over an existing retirement account into an IRA CD or depositing cash into the product. The same limits that apply to IRA contributions apply to IRA CDs: $5,500 per year ($6,500 if you’re over age 50) of your own money across all your IRA accounts each year, and you can do a rollover once per year.

Unless you’ve invested in a bump-up IRA CD, you won’t be able to take advantage of a higher rate until your CD matures. Withdrawing funds from an IRA CD before they mature will result in a stiff penalty. Bump-up IRA CDs give you a chance to increase your interest rate to a higher level if it’s available, but you’re generally only allowed to do this once or twice during the life of the CD.

You can either use the direct-transfer method or the indirect-transfer method. The direct transfer method requires setting up your new IRA account filling out a form authorizing the bank or credit union to transfer money from the old account into the new account. The indirect transfer method involves you asking for a check from your old IRA account. You have up to 60 days to deposit that check into your IRA CD to avoid incurring a penalty.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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