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Top Jumbo CD Rates for September 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Jumbo CD rates
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Conservative savers generally consider certificates of deposits (CDs) as sanctuaries where their money is kept safe and they enjoy a decent yield without stomaching the risk of investing in the stock market.

You agree to deposit your money in a bank or credit union for a fixed amount of time (which can be as short as a few months or as long as several years) and get the satisfaction of knowing your money is likely earning a higher annual percentage yield (APY) than it would in a checking or savings account.

Jumbo CDs, which in most cases require a minimum deposit of $100,000, have traditionally promised even higher APYs for customers than regular CDs. But a combination of rising interest rates and fierce competition among banks — both online and traditional — for the deposits of customers have given rise to many normal CDs that offer a better return than jumbo CDs.

It’s not entirely clear why banks haven’t been similarly aggressive in offering higher-yield jumbo CD rates as they have with regular CDs, but one possibility is that they are interested in attracting more customers rather than big money deposits. In other words, banks would rather have the business of 100 customers each depositing $5,000 CDs than 10 customers depositing $500,000 jumbo CDs.

Regular 1-Year CD vs 1-Year Jumbo CD

Institution

Goldman Sachs Bank USA

My eBanc

CD Term

1 year

1 year

APY

2.25%

2.25%

Minimum Deposit Amount

$500

$100,000

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

learn more

Regular 3-Year CD vs 3-Year Jumbo CD

Institution

MAC Federal Credit Union

Veridian Credit Union

CD Term

3 year

3 year

APY

3.00%

2.10%

Minimum Deposit Amount

$1,000

$100,000

LEARN MORE Secured

on MAC Federal Credit Union’s secure website

NCUA Insured

Learn more

Regular 5-Year CD vs 5-Year Jumbo CD

Institution

Goldman Sachs Bank USA

KS StateBank

CD Term

5 year

5 year

APY

2.45%

1.95%

Minimum Deposit Amount

$500

$100,000

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

Learn more

That said, if you feel the need to go big when it comes to your CD, then you likely won’t find better rates than the ones listed below.

The top jumbo CD rates of September 2019

To determine the best CDs for your jumbo-sized deposit, we turned to the database found on DepositAccounts.com, a website that like MagnifyMoney is also owned by LendingTree. For each common CD term, we assumed the customer was planning to deposit $100,000 in the account so as to include traditional jumbo CDs which typically have a higher minimum deposit needed to open. All the accounts included are also available nationwide.

You’ll notice as you read through the list of CDs we’ve selected, that some of them have minimum deposits of far less than $100,000. That’s because we’re focused on informing you of the best CD accounts for your money, and there are plenty of large minimum deposit CDs that still offer a great APY. You can rest assured we aren’t leaving out any good deals just because a financial institution’s marketing team decided not to call a CD “jumbo.”

Institution

CD Term

APY

Minimum Deposit Amount

Total Direct Bank3 months2.20%$25,000
Merrick Bank6 months2.19%$25,000
Total Direct Bank12 months2.50%$25,000
Merrick Bank18 months2.45%$25,000
Hughes FCU24 months2.53%$99,000
Hughes FCU36 months3.10%$99,000
Commonwealth One FCU48 months3.01%$100,000
Commonwealth One FCU60 months3.21%$100,000

As of September 9, 2019

Banks that offer the best jumbo CD rates

Total Direct Bank — 3-month CD, 2.20% APY; 12-month CD, 2.50% APY

TotalDirectBank

Total Direct Bank is an internet bank that lacks any physical branches and offers its high-yielding deposit productions throughout the United States. Note that Total Direct is a division of City National Bank of Florida, which holds your deposits and provides FDIC insurance. All of Total Direct Bank’s CD products require a sizable minimum deposit of $25,000, including the 3-month certificate and the 12-month certificate. It’s worth noting as well that the maximum deposit amount allowed per client with Total Direct is $500,000.

Both CD maturities nenew automatically, with a ten-day grace period following maturity to withdraw your funds without being charged a penalty. Interest is paid at maturity, either by check or bank transfer to another account, or it can be rolled over into a new certificate with the original principal.

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on TotalDirectBank’s secure website

Member FDIC

Merrick Bank — 6-month CD, 2.19% APY; 18-month CD, 2.45% APY

Merrick Bank
Based in Utah, Merrick Bank is an internet bank that was established in 1997. Merrick has carved out a business offering credit cards, personal loans and certificates of deposit. You’ll need $25,000 to open the bank’s 6-month or 18-month CDs, and the sole funding method is by ACH transfer. For both maturities, interest is compounded daily and paid on a monthly basis, and may not be withdrawn until maturity. Note that the CDs renew automatically at maturity, and you have at ten-day grace period to withdraw your funds without penalty.

LEARN MORE Secured

on Merrick Bank’s secure website

Member FDIC

Hughes FCU — 24-month CD, 2.53% APY; 36-month CD, 3.10% APY

Hughes Federal Credit Union
Hughes Federal Credit Union is based in Arizona and offers two of our leading jumbo CDs, or what it calls “certificate accounts.” Hughes offers regular, mini-jumbo and jumbo certificate accounts, with the most attractive APYs available on its jumbo accounts. With the 24-month and 36-month jumbo certificates, interest is compounded daily and credited monthly.

Joining Hughes FCU is as easy as making a $10 donation to one of several local Ariozona public libraries. Membership is also open to anyone who lives or works in Tucson, Arizona, as well as employees and employee family members of more than 800 sponsor companies and organizations, not to mention employees of the State of Arizona and the University of Arizona.

LEARN MORE Secured

on Hughes Federal Credit Union’s secure website

NCUA Insured

Commonwealth One FCU — 48-month CD, 3.01% APY; 60-month CD, 3.21% APY

Commonwealth One Federal Credit Union
Commonwealth One Federal Credit Union calls its CDs share certificates, and offers a full slate of maturities for both its conventional and jumbo certificates. The 48-month and 60-month jumbo share certificates earn very decent APYs, and feature a minimum deposit of $100,000. Interest on the certificates is compounded daily and posted to the certificate quarterly. These share certificates renew automatically at maturity, and there is a seven-day grace period to withdraw funds after maturity date without penalty.

Commonwealth One opens its membership rolls to anyone who is a member of the Virginia Consumer Council, a division of the American Consumer Council. In addition, anybody who lives, works or attends school in Washington D.C., or areas of northern Virginia are also eligible to join. Membership is also open to employees of more than 200 sponsor organizations.

LEARN MORE Secured

on Commonwealth One Federal Credit Union’s secure website

NCUA Insured

 

Go jumbo or stick to regular CDs?

To be considered “jumbo,” a CD needs to require a large minimum deposit, usually $100,000, as opposed to a normal CD which may not even require a minimum deposit. The deal banks made with well-off depositors boiled down to ‘if you leave lots of your money with us in this jumbo CD, we’ll give you a higher yield than if you deposited it in a normal CD.’

It’s important to note the differences between a jumbo CD and regular CD aren’t set in stone and have more to do with how the bank or credit union markets their savings products than any hard and fast rule, says Ken Tumin, founder of DepositAccounts.com, another LendingTree-owned site.

“I’ve seen banks and credit unions with jumbo CD minimums as low as $10,000 and as high as $250,000,” Tumin told MagnifyMoney. “Even if a bank doesn’t offer jumbo CDs with high minimums, someone could still deposit a large balance into a regular CD. They just wouldn’t be earning any higher interest than someone depositing a small balance.”

As the difference in earnings from a jumbo CD and traditional CD has diminished (or disappeared completely), the drawbacks of parking so much money in a CD become more apparent. For example, the jumbo CDs with the highest APY usually require a longer period of time to mature, which means you have at least $100,000 exposed to inflation—which means you possibly end up earning less than you expected.

Withdrawal penalties on jumbo CDs

According to a recent survey, the penalties for withdrawing your money from your CD early could be serious. Some banks will even take part of your principal as a penalty.

Below are the most common penalties, according to the survey:

  • 3 month CD: Three months of interest
  • 6 month CD: Three months of interest
  • 1 year CD: Six months of interest
  • 2 year CD: Six months of interest
  • 5 year CD: A year’s worth of interest

So, it’s important to be confident that you want to put your money in a CD. When you do this, you’re making an agreement with the bank to leave it there for a set period of time. If you’re unsure if you want to tie up your money for a long period of time, consider a high-yield savings account instead.

How jumbo CDs are taxed

It’s important to know that the interest you earn on your jumbo CD will be taxed as interest income, not as capital gains income.

This means that your bank or credit union will send you a 1099-INT form at the end of the year to show how much interest you earned in your jumbo CD and you will be taxed on that.

Are jumbo CDs safe?

According to the U.S. Securities and Exchange Commission: “Certificates of deposit are considered to be one of the safest savings options. A CD bought through a federally insured bank is insured up to $250,000.”

Some people prefer investing in the stock market over CDs because you can often get higher rates of returns; however, the stock market is a riskier bet, and returns are not guaranteed like those associated with CDs.

CDs are not affected by the whims of the stock market. The interest rate you agree on with your bank is the rate you will get. That interest rate, however, may not outpace inflation, meaning you may not really earn much, if anything, over time.

Final thoughts

If you have over $100,000 and want to invest it in a jumbo CD, you have several options. Like the chart above shows, you can choose many different terms and durations for your jumbo CD. Just be sure to research the bank you invest with so you know you’re putting your money with a top-rated institution. Also, be sure that you’re comfortable with putting your money in a CD long-term because there are often penalties for withdrawing your money early.

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.

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

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The Top 6 Month CD Rates for September 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

The top 6-month CD rates

Short-term certificate of deposit (CD) accounts offer investors a safe opportunity to squirrel away money for a future expense. If you’re looking for a brief solution for storing your cash and want to earn more interest than a typical savings account will offer, a 6 month CD can make a lot of sense. (It’s also a good place to start if you’re building a CD ladder.)

Using information from DepositAccounts.com, another LendingTree company and a database of offerings at more than 17,100 banks and credit unions, we found the five banks and five credit unions with the top 6 month CD rates. If there was a tie, we chose the institution with the smaller minimum deposit requirement. We excluded promotional offerings. The national average APY on 6 month CDs (among banks and credit unions) is 0.91%, according to the DepositAccounts.com database. These options outperform that average by a long shot. (You may also want to view our picks for the overall best CD rates.)

Banks with the best 6-month CD rates

BankAPYMinimum deposit amount
Merrick Bank2.19%$25,000
CD Bank2.35%$10,000
TAB Bank2.24%$1,000
Live Oak Bank2.00%$2,500
Prime Alliance Bank2.04%$500

Merrick Bank — 2.19% APY, $25,000 minimum deposit

6 Month CD from Merrick BankMerrick Bank’s 6 Month CD earns at a rate comparable to its long-term counterparts. Just watch out for its high minimum deposit requirement of $25,000. Making an early withdrawal from this account will trigger a penalty equal to 1% of the account balance or seven days’ interest, whichever is greater.

Merrick Bank was founded in 1997.

LEARN MORE Secured

on Merrick Bank’s secure website

Member FDIC

CD Bank — 2.35% APY, $10,000 minimum deposit

6 Month CD from CD BankCD Bank also offers an equally competitive 6 Months CD, but requires a pretty high minimum deposit of $10,000. The early withdrawal penalty equals three months’ interest on the amount withdrawn.
CD Bank offers only CD accounts that range from three to 60 months. CD Bank is an online division of TBK Bank, which is itself a subsidiary of Triumph Bancorp, Inc.

LEARN MORE Secured

on CD Bank’s secure website

Member FDIC

TAB Bank — 2.24% APY, $1,000 minimum deposit

6 Month CD from TAB Bank TAB Bank requires a minimum deposit of $1,000 to get started with its CDs like its 6 Month CD. Just watch out for an early withdrawal, as you’ll lose 90 days interest on the amount withdrawn subject to penalty.

TAB Bank was founded in 1998.

LEARN MORE Secured

on TAB Bank’s secure website

Member FDIC

Live Oak Bank — 2.00% APY, $2,500 minimum deposit

6 Month CD from Live Oak BankLive Oak Bank’s shortest term, the 6 Month CD, earns at a competitive rate not far behind the bank’s longer-term CDs. It requires a $2,500 minimum deposit to open and earn interest. The early withdrawal penalty will equal 90 days’ interest.
Live Oak Bank is located in Wilmington, NC, but serves customers nationwide through online banking. While their initial focus was to help small businesses acquire funding, they now help all individuals through personal banking.

LEARN MORE Secured

on Live Oak Bank’s secure website

Member FDIC

Prime Alliance Bank — 2.04% APY, $500 minimum deposit

6 Month CD from Prime Alliance BankFor the best 6-month CD rate from a bank, head to Prime Alliance Bank. It requires at least $500 to open. The early withdrawal penalty will equal one months’ worth of interest on the amount withdrawn.

Still accessible online, Prime Alliance Bank’s one branch is located in Woods Cross, Utah. The bank was founded in 2004.

LEARN MORE Secured

on Prime Alliance Bank’s secure website

Member FDIC

Credit unions with the best 6-month CD rates

Credit UnionAPYMinimum deposit amount
Communitywide Federal Credit Union2.35%$2,000
INOVA Federal Credit Union2.10%$200
Veridian Credit Union2.10%$1,000
State Department Federal Credit Union2.06%$500
ABCO Federal Credit Union2.05%$1,000

Communitywide Federal Credit Union — 2.35% APY, $2,000 minimum deposit

6 Month Share Certificate from Communitywide Federal Credit UnionWith at least $2,000, you can open a high-yield 6-month CW Certificate Account online. The early withdrawal penalty from this account is equal to the amount withdrawn multiplied by the remaining days left in the term.

Founded as a credit union to provide quality financial services to individuals in South Bend, Ind., Communitywide Federal Credit Union has grown to offer their services to various communities within Indiana as well as the digital world.

Anyone can become a member by donating to a list of organizations including the Y.M.C.A. If you’re a member of the Michiana Goodwill Boosters or Marine Corps. League of St. Joseph Valley, you’re also eligible to become a member.

LEARN MORE Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

INOVA Federal Federal Credit Union — 2.10% APY, $200 minimum deposit

7 Month CD from INOVA Federal Credit UnionIf you’re willing to wait just one more month for your CD to mature, INOVA Federal Credit Union offers a high-yield 7 Month CD. Plus, it requires only $200 to open. The early withdrawal penalty will equal 90 days’ dividends.

INOVA was founded in 1942 to serve the employees of Miles Laboratories. Today, you can qualify for INOVA membership through your employer, membership in other organizations or through an immediate family member. INOVA has seven branches between Indiana and California and includes access to thousands of CO-OP Shared Branch locations.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Veridian Credit Union — 2.10% APY, $1,000 minimum deposit

9 Month CD Special from Veridian Credit Union You’ll need at least $1,000 to open a Veridian Credit Union 9 Month CD Special and start earning interest at this rate. Veridian bases its CD early withdrawal penalties on the amount of the CD, the term of the CD, how far away the CD is from maturity and how much you are wanting to withdraw.
Veridian Credit Union got its start in 1934, founded by John Deere employees. Veridian membership is open to residents and employees of businesses within the credit union’s field of membership, family or household members of eligible individuals, Iowans with disabilities as defined by the Americans with Disabilities Act of 1990 and registered Dwolla users.

LEARN MORE Secured

on Veridian Credit Union’s secure website

NCUA Insured

State Department Federal Credit Union — 2.06% APY, $500 minimum deposit

6 Month Certificate from State Department Federal Credit UnionWith another low minimum deposit requirement, State Department Federal Credit Union requires just $500 to open an account. There are no service charges and interest is compounded daily. An early withdrawal from this account will lose you either 30 days of dividends on the amount withdrawn or the amount of dividends earned since the date of issuance, whichever is less.
Founded in 1935, SDFCU is headquartered in Alexandria, Va. Customers also have access to the CO-OP Shared Branch network.
State Department FCU membership is open to employees of The U.S. Department of State. Eligibility is also determined through select organization membership, an immediate family member or the American Consumer Council. You and your employees may also apply for SDFCU membership as a group.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

ABCO Federal Credit Union — 2.05% APY, $1,000 minimum deposit

6 Month CD from ABCO Federal Credit UnionTake advantage of ABCO FCU’s 6-month Special CD to grow your money at a competitive rate over a short period of time. Open the account with at least $1,000. The early withdrawal penalty will equal 120 days’ worth of dividends.
ABCO was founded in 1958 and is headquartered in Willingboro, New Jersey. Membership is open to employees of select groups and organizations.

LEARN MORE Secured

on ABCO Federal Credit Union’s secure website

NCUA Insured

Pros and cons of using 6 month CDs

Pros:

  • The CD rates offered by banks and credit unions are generally higher than those on savings accounts.
  • The rates are fixed and guaranteed for the length of their term.
  • The discipline of keeping the funds in the CD means the money will be available upon maturity. (Note: Most banks offer a seven-day grace period to reinvest or withdraw the investment, after which the funds will roll over into a new CD. However, you are not guaranteed the same rate.)

Cons:

  • Six-month CD rates are lower than those offered on longer CD investment terms.
  • To tap into the CD funds — even for emergencies — consumers must accept a loss through penalties, which can include a percentage of the funds, a percentage of the earned interest, or a combination of both. A typical penalty on a short-term CD is between 30 and 90 days’ worth of interest earnings.
  • If you’re not confident you can do without access to the funds for six months, you may be better off putting your money in a traditional savings account, which is likely to earn less interest than a CD.
  • Since CD rollovers may reset at a different percentage rate, consumers must speak with the bank before the grace period ends to ensure they are getting the best deal.

Using a 6 month CD for laddering

A CD ladder comprises small-amount CDs with varying terms and respective interest rates that contribute to a long-term investment strategy. After the 6 month CD matures, investors can withdraw the funds for a predetermined expense. Or, they can reinvest the money into a longer-term CD with a better rate. By staggering the maturity dates on short-term CDs, consumers have access to their cash on a regular, predictable basis.

Where can you open a CD account?

Consumers can open 6 month CD accounts (or longer) from banks and credit unions. Bank and credit union CD rates are based on Federal Reserve rates, and there may be strategic times to pursue these short-term instruments following a rate increase.

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.

Gabby Hyman
Gabby Hyman |

Gabby Hyman is a writer at MagnifyMoney. You can email Gabby here

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Best of, Earning Interest

The Best Credit Union CD Rates – September 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

The top credit union CD rates
Source: iStock

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 June 2019, the average one-year credit union CD had a 1.42% annual percentage yield (APY), compared to the 1.11% 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 September 5, 2019. We then eliminated any credit union with a health rating lower than a B and identified the top 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 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 often 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 — 15-Month CD, 2.70% APY, min. deposit $500

15 Month CD Special from USALLIANCE Financial

The rest of the credit union offerings on this list are 12-month CDs, however USALLIANCE Financial is offering a special 15-month Certificate with an outstanding APY of 2.70% that is about the strongest credit union CD offerings available. In addition, USALLIANCE offers at 9-month Certificate special that earns an impressive 2.50% APY. The credit union’s standard 12-month Certificate earns 2.30% APY. The minimum deposit for all three certificates is $500.

Membership in USALLIANCE Financial is open to residents of certain localities in Massachusetts, Connecticut and New York, as well as members of the American Consumer Council and a raft of other professional associations.

LEARN MORE Secured

on USALLIANCE Financial’s secure website

NCUA Insured

State Department Federal Credit Union– 12 Month Share Certificate, 2.42% APY, min. deposit $500

12 Month Certificate from State Department Federal Credit UnionDon’t worry, you don’t need a security clearance from the federal government to join this credit union—you simply need to sign up with the American Consumer Council and you can begin enjoying the benefits of your new membership.

One of those benefits, should you so choose, includes this 12-Month Share Certificate, which allows you to park your money in an account earning 2.42% APY with a minimum deposit of at least $500. You’ll have to pay 180 days worth of interest if you withdraw your money from the certificate before it matures, but it’s worth noting you can make a partial early withdrawal — and pay the penalty — without closing out the account completely.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

Communitywide Federal Credit Union — 12-Month CD, 2.40% APY, min. deposit $2,000

12 Month Share Certificate from Communitywide Federal Credit Union For over 50 years, Communitywide Federal Credit Union has provided banking services to the citizens of northern Indiana, and now a completely revamped online and mobile portal brings its great rates to you, wherever you are. Membership in Communitywide FCU is open to members of the Michiana Goodwill Boosters or the Marine Corps League of St. Joseph Valley, as well as employees of over 40 companies in the central Midwest region.

In exchange for a $1,000 minimum deposit, Communitywide’s 12-month share certificate earns a 2.40% APY. One great feature is flexibility regarding your dividends, which may be compounded in the certificate, deposited to another share certificate, or transferred to another account. Another feature to understand is that there is no automatic renewal of Communitywide’s share certificates, which could be a good thing for savers who like to be reminded to survey the best rates available before rolling over their investments.

LEARN MORE Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

Bellco Credit Union – 12 Month CD, 2.30% APY, min. deposit $500

12 Month CD from Bellco Credit UnionAnyone in the country can join this Colorado-based credit union by making a minimum $10 donation to the Bellco Foundation. The 12-month CD offered by Bellco earns a 2.30% APY and only requires a minimum deposit of $500, making it a winner for savers.

LEARN MORE Secured

on Bellco Credit Union’s secure website

NCUA Insured

United States Senate Federal Credit Union — 12-Month CD, 2.28% APY, min. deposit $1,000

12-23 Month Share Certificate from United States Senate Federal Credit Union
Fear not, you don’t need to be a member of the United States Senate to get this competitive rate on a share certificate — membership is open to anyone who joins the American Consumer Council or makes a contribution to the US Capitol Historical Society. With a minimum deposit of $1,000, the 12-month CD offered by the United States Senate FCU earns a 2.28% APY. Larger deposits earn marginally higher rates: Deposit $20,000 to $60,000 and your APY climbs to 2.33%, while a deposit of more than $60,000 earns 2.38% APY.

LEARN MORE Secured

on United States Senate Federal Credit Union’s secure website

NCUA Insured

Quorum Federal Credit Union – 12 Month Term Savings CD, 2.25% APY, min. $1,000

12 Month Term Savings CD from Quorum Federal Credit UnionHeadquartered in New York State, Quorum Federal Credit Union offers membership eligibility to anyone who joins the Ameircan Consumer Council. This credit union provides its members with all of the standard banking services you’d expect, including a suite of term savings deposits (CDs). While Quorum’s CD rates are strong across the board, of particular interest is the 2.25% APY earned by the 12 month term CD.

LEARN MORE Secured

on Quorum Federal Credit Union’s secure website

NCUA Insured

Sun East Federal Credit Union – 12 Month CD, 2.20% APY, min. deposit $500

12 Month CD from Sun East Federal Credit Union

Headquartered in Aston, PA, this credit union offers its services to members nationwide via the internet. Anyone can join this credit union by making a $10 donation to the Sun East Charitable Foundation, allowing them to enjoy one of the most competitive CDs around.

Depositors into this CD can expect an APY of 2.20% should they let the certificate fully mature. Otherwise, they face a penalty of 180 days worth of interest if they withdrawal the funds early.

LEARN MORE Secured

on Sun East Federal Credit Union’s secure website

NCUA Insured

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 1.32% in September. You’ll need to deposit a minimum of $1,000 to open this CD. 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, 1.50% 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 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 2018 mobile banking app analysis.

Eastman Credit Union – 1-Year Investment Certificate, 2.25% 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 2.25% 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 $10.35 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 $2,170 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.

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on Wright-Patt Credit Union’s secure website

NCUA Insured

Redstone Federal Credit Union – 12 Month MemberPlus Regular Share Certificate, 1.91% 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 1.91% 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.

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on Redstone Federal Credit Union’s secure website

NCUA Insured

SECU – 1-Year CD, 1.85% APY, min. deposit $500

SECU
The State Employees Credit Union of Maryland (SECU) is the largest credit union in the state of Maryland and is among the largest credit unions in the United States. Membership is open to employees, retirees and contractors of the state of Maryland, employees of Anne Arundel County, alumni, students, faculty and staff of University System of Maryland Schools, employees of organizations located in Maryland that receive federal, state or local funding, and over 500 local Select Employer Groups. SECU offers a decent rate of 1.85% on its 1-year CD.

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on SECU’s secure website

NCUA Insured

Delta Community Credit Union – 1-Year Certificate, 1.75% 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 1.75%. The early withdrawal penalty is 90 days’ worth of interest on a 12-month CD.

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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.

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Lindsay VanSomeren
Lindsay VanSomeren |

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