CUs sweep best CD rates nationwide: GOBankingRates
LOS ANGELES (10/29/14)--Across the board, credit unions nationwide offer higher rates on certificates of deposit (CD) than banks. Period.
GoBankingRates.com recently compiled a state-by-state list of the best CDs in the United States, and at the top of each list--for six-month, one-year, two-year and five-year CD rates--credit unions dominated (GOBankingRates.com Oct. 27).
Only for the six-month rate did a credit union not rank No. 1.
For one-year CD rates, the top five spots belonged to credit unions, with Hanscom FCU, Hanscom Air Force Base, Mass., with $1 billion in assets, topping the list at a 3% annual percentage yield (APY).
For two-year rates, where seven out of the top 10 were credit unions, Kauai Government Employees FCU, Lihue, Hawaii, with $105 million in assets, led the way with a 1.75% APY.
Four credit unions topped the five-year rate category, with Chartway FCU, Virginia Beach, Va., with $1.9 billion in assets, at the top, offering a 2.52% APY.
And while one bank is offering an abnormally high rate for the six-month CD, credit unions make up the majority of the spots in the top 10, with Service CU, Portsmouth, N.H., with $2.4 billion in assets, coming in at No. 2 at a 1.35% APY.
Additional findings from the GOBankingRates.com survey:
- The average U.S. CD rate was 0.51% APY, five times the average savings account interest rate; and
- Increases in term length are not proportionate to increases in the yield; longer-term lengths result in diminishing increases to the yield.
The study was completed by compiling rates from GOBankingRates and Informa Research Services databases. The rates are accurate as of Oct. 10.