LOS ANGELES (6/23/15)--It’s a tough market for savings accounts, even for consumers just trying to keep pace with inflation. A few percentage points makes all the difference, and the best rates on savings can be found at credit unions, which, on a local basis, consistently offer better rates on savings than banks (GOBankingRates.com June 22).
“Credit unions seem to be the place to go; eight of the 10 best rates offered by brick-and-mortar institutions belong to credit unions,” GoBankingRates reported in a June 22 article “Best Savings Account Rates Today.”
Holding the No. 1 spot on the list of local credit union and bank savings rates was Seattle-based School Employees CU of Washington, which offers its members a 6% annual percentage yield (APY) on all of its savings accounts, if the account holder signs up for direct deposit or payroll deduction and e-statements. The 6% APY rate applies to balances up to $500.
Guardian CU, Montgomery, Ala., offers a 5.10% APY on its RoundUp Savings account, which rounds up expenses made on its debit card to the nearest dollar amount and deposits the difference into savings.
The Primary Savings account at Digital FCU, Marlborough, Mass., yields a 3.04% APY on the first $500 deposited and 0.05% after that.
Avadian CU, Hoover, Ala., offers a 3% APY on all balances over 1 cent, with dividends paid quarterly on its Centsible Savings Account. Account holders must have a regular savings share account, checking account and debit card with Avadian to enroll. Every debit purchase will be rounded up to the nearest dollar amount, and the difference will be transferred to savings. The credit union will match 25% of savings for the first 30 days after the account is opened.
Pioneer Mutual FCU, Sugarland, Texas, offers a 2.78% APY on its Share Savings account, with a minimum opening balance of $110. Interest is paid each quarter on balances over $250, and there’s no monthly fee.
Houston Police FCU offers a 2.02% APY on its Share Saving Account with a minimum balance of $2,500.