A credit union certificate of deposit, also called a share certificate, can be more profitable for your savings than a bank CD. CDs suit time-specific savings goals and offer predictability and safety, but they typically require you to lock your money up for a specified period or pay penalties.
In this article, we at the MarketWatch Guides team tell you where you can get the best credit union CD rates right now. We also cover membership requirements and what you should consider before opening an account.
Key Takeaways
- Thebest rates on certificates of deposit (CDs) from credit unions typically have terms ranging from six months to one year
- American Airlines Credit Union’s six-month CD pays the highest rate among our top-rated credit unions —at 5.35%annual percentage yield (APY)
- While getting credit union CDs requires membership with a credit union, they can offer better rates and more options than CDs from other financial institutions.
Featured CDs
Best CD Rates From Our Top-Rated Credit Unions
The MarketWatch Guides research team reviewed CD rates from 23 credit unions that have low minimum deposit requirements and earn high scores in our reviews. To create our list of the best credit union CD rates, we selected our top-rated financial institutions that are insured by the National Credit Union Administration (NCUA) and have interest rates that are at least twice the national averages reported by the Federal Deposit Insurance Corp. (FDIC).
Credit union CD rates are available in a variety of term lengths. For this list, we selected the highest CD rates available for standard CD terms ranging from six months to one year.
| Credit Union | CD Term | APY* | Minimum Opening Deposit |
| American Airlines Credit Union | 6 months | 5.35% | $1,000 |
| Navy Federal Credit Union | 1 year (special EasyStart CD) 6 or 7 months (standard CD) | 5.30% (special EasyStart CD) 4.80% (standard CD) | $50 (special EasyStart CD) $1,000 (standard CD) |
| America First Credit Union | 6 to 11 months | 5.25% | $500 |
| Mountain America Credit Union | 6 months or 1 year | 5.25% (growth or standard CD) | $5 (growth CD) $500 (standard CD) |
| Alliant Credit Union | 1 year | 4.75% | $1,000 |
| Quorum Federal Credit Union | 11 months | 5.00% | $1,000 |
American Airlines Credit Union
4.6
CD APYs3.09% to 5.35%Terms OfferedSix months to five yearsMinimum Opening Deposit$1,000
Why We Like It
Why We Like American Airlines Credit Union: American Airlines Credit Union serves air transportation members through 46 branches and more than 5,000 shared co-op branches. Its six-month CD has one of the highest APYs among our top picks for six-month to one-year CDs from credit unions. It requires a $1,000 minimum deposit.
American Airlines Credit Union also offers one- to five-year terms for standard certificates and those for individual retirement accounts (IRAs). These all have the same deposit requirement. The one-year term pays the second-highest APY. For these accounts, a $10,000 minimum opening deposit could get you a different APY.
You can open a CD ladder to earn better rates on some CD terms. The credit union offers three CD ladder options with different term lengths.
Another option is the five-year add-on CD, which American Airlines Credit Union calls the Dream Plan Share Certificate. It requires a minimum opening deposit of $25 and at least $25 in recurring monthly deposits. With this CD, the early withdrawal penalty is waived if you use the funds for a down payment on a home that’s financed through the credit union.
Early Withdrawal Penalty
Below are American Airlines Credit Union’s early withdrawal penalties by CD term:
- Six months to three years: 180 days of interest
- Four to five years: 365 days of interest
How To Open an Account
To join American Airlines Credit Union, you need to be a worker, retiree or volunteer in the air transportation industry or be employed by an eligible company that works with airlines or airports. Immediate family members or permanent household members with the same address can also join.
You can become a member in person, online or through the mail by paying a $6 minimum deposit, which includes the one-time $1 membership fee. You can open the certificate account during the membership application. For the application, the credit union requires your Social Security number, government-issued ID, current address, birthdate and funding method, such as a check or bank transfer.
Navy Federal Credit Union
CD APYs0.40% to 5.10%Terms OfferedThree months to seven yearsMinimum Opening Deposit$5 to $1,000
Why We Like It
Why We Like Navy Federal Credit Union: Focused on military members, Navy Federal Credit Union has around 350 branches worldwide. Its standard certificates require at least a $1,000 deposit and are available with three-month to seven-year terms. The one-year special EasyStart CD currently has the best APY Navy Federal offers. This is a promotional rate that the credit union may stop offering, but the standard one-year CD has the second-highest APY.
You can also get slightly higher rates across all terms with a $100,000 minimum balance.
Navy Federal also offers specialty certificates, which include:
- IRA certificates: Made for retirement savings, these accounts have the same term lengths, rates and requirements as standard certificates.
- EasyStart certificates: These accounts have shorter one- to two-year terms and a minimum opening deposit of just $50. They pay competitive rates and allow ongoing deposits.
- SaveFirst account: This option allows ongoing deposits and comes in terms of three months to five years, but it pays a much lower APY than Navy Federal’s other CDs.
Early Withdrawal Penalty
If you make an early withdrawal, Navy Federal Credit Union can take up to all the interest you’ve earned, though the following limits by term apply. You’ll pay whichever penalty amount is lower for your term.
- One year or less: 90 days’ interest
- More than one year and less than five years: 180 days’ interest
- Five years or more: 365 days’ interest
How To Open an Account
The following affiliations make you eligible for membership with Navy Federal Credit Union:
- You’re a current or previous military service member
- You’re an eligible Department of Defense worker or contractor
- You work for another eligible employer
- You have an immediate family member who joined Navy Federal or the military
You can complete the membership application online, by mail or at a local branch. You’ll need to provide your government-issued ID, Social Security number and other personal information, along with a funding method for the initial $5 deposit required for a savings account. You can request your CD online, by phone or in person once you’ve become a member.
America First Credit Union
4.6
CD APYs4.20% to 5.25%Terms OfferedThree months to five yearsMinimum Opening Deposit$5 to $500
Why We Like It
Why We Like America First Credit Union: America First Credit Union serves members through 124 branches in select states in the West. Its regular share certificates come in term options ranging from three months to five years. They require a $500 minimum opening deposit, and they must have at least $500 in them to earn interest. Currently, you can get the most competitive APYs with terms ranging from three to 11 months.
Additionally, the credit union has the following specialty CDs with different rates and requirements:
- Bump-up certificates with a potential one-time rate hike
- IRA certificates for guaranteed rates on retirement savings
- Flexible certificates, which allow account holders to make ongoing deposits and one penalty-free withdrawal each quarter
- Ladder certificates for diverse interest rates and flexibility
- Dedicated savings accounts, which come in IRA or regular versions and allow ongoing deposits
Early Withdrawal Penalty
America First Credit Union charges at least $5 for withdrawing principal from a CD. Penalties are based on the CD term.
- One year or less: 60 days of interest
- Over one year: 180 days of interest
How To Open an Account
There are many ways you can qualify for membership with America First Credit Union, including these:
- Living in, working in or being associated with an eligible community in Utah, Nevada, Arizona, Idaho, Oregon or New Mexico
- Working for an eligible employer or owning an eligible business
- Being an immediate family or household member of an America First member
- Working for the credit union
To apply for membership online or at a branch, you’ll need to provide your government-issued ID, Social Security number, home address and other personal information. This involves getting a basic savings account and making a $1 deposit via a bank transfer or other method. Once you’re a member, you can open your certificate online, by phone or in person.
Mountain America Credit Union
4.6
CD APYs4.20% to 5.25%Terms OfferedSix months to five yearsMinimum Opening Deposit$500
Why We Like It
Why We Like Mountain America Credit Union: Utah-based Mountain America Credit Union (MACU) has more than 100 branches and serves members in its home state and five neighboring states. It offers standard certificates with a $500 minimum deposit and terms from six months to five years. The six-month and one-year terms pay the most competitive APYs.
For standard certificates, if you take a 0.25% lower starting rate, you can qualify for a rate bump later on if market rates increase. There are also IRA options and growth certificates, which allow you to deposit money in the account at any time.
MACU offers youth certificates with slightly higher APYs, a $5 minimum opening deposit requirement and support for additional deposits. The credit union also has a Christmas Club certificate, which is a short-term, flexible option for holiday savings goals.
Early Withdrawal Penalty
MACU’s early withdrawal penalties by CD term are:
- One year or less: 90 days’ interest
- More than one year but less than four years: 180 days’ interest
- Four years or more: 365 days’ interest
How To Open an Account
Here are your options for qualifying for MACU membership:
- Live in an eligible county in Utah
- Be affiliated with an eligible association or employer
- Have a qualifying family or household member who’s a MACU member
You can call MACU, go to a branch or fill out the online membership application, which requires opening a savings or checking account before you can open a CD. You’ll then need to provide your government-issued ID, Social Security number and other personal information, along with a way to deposit at least $1. After you’re a member, you can use the same application methods to open the certificate account.
Alliant Credit Union
4.2
CD APYs4.00% to 5.45%Terms OfferedThree months to five yearsMinimum Opening Deposit$1,000
Why We Like It
Why We Like Alliant Credit Union: Alliant Credit Union, an online institution, has flexible membership requirements and some of the best CD rates. It offers standard certificates with a $1,000 minimum deposit and term options of three months to five years. The one-year term currently has Alliant’s most competitive rate for a standard CD, with the six-month certificate offering the second-highest rate.
To get better rates for some terms, you can open a jumbo certificate with a $75,000 minimum deposit. With the one-year term for a jumbo certificate, you get a slightly higher APY. Alliant also offers traditional and Roth IRA versions of both the standard and jumbo accounts.
Early Withdrawal Penalty
The penalty for early principal withdrawals depends on your CD term:
- 17 months or less: Number of days the CD is open, up to 90 days’ interest
- 18 to 23 months: Number of days the CD is open, up to 120 days’ interest
- Two to four years or five years: Number of days the CD is open, up to 180 days’ interest
How To Open an Account
You have four options for qualifying for Alliant Credit Union membership:
- Be affiliated with one of Alliant’s partner employers
- Have a current member in your immediate family
- Live or work in a qualifying community in the Chicago area
- Join the Alliant Credit Union Foundation (Alliant pays the $5 contribution)
You can then apply for membership online, by mail or by phone. Alliant will need your Social Security number, proof of address and government-issued ID. Once you’re a member, you’ll be required to open a savings account in conjunction with your new CD account.
Quorum Federal Credit Union
4.1
CD APYs2.20% to 5.10%Terms OfferedThree months to five yearsMinimum Opening Deposit$1,000
Why We Like It
Why We Like Quorum Federal Credit Union:
While Quorum Federal Credit Union (QFCU) operates online, its members can visit 5,000 shared branch locations through partner credit unions. Quorum offers standard and IRA certificates with terms of three months to five years and a $1,000 minimum opening deposit requirement.
Quorum also has jumbo certificates, which offer a 0.10% rate bonus but require a $100,000 minimum deposit. The 11-month standard or IRA certificate currently has Quorum’s highest APY for a non-jumbo CD, and the 15-month standard certificate offers the second-highest rate.
Early Withdrawal Penalty
For early withdrawals, Quorum charges a percentage of the amount you withdraw early. The penalty will never exceed the original balance. The penalty varies by term:
- Two to 11 months: 1% of the withdrawn amount
- One to two years: 2% of the withdrawn amount
- 25 months or longer: 3% of the withdrawn amount
How To Open an Account
You can join Quorum if you’re employed with or retired from a Select Employee Group (SEG) or if you’re a family member of someone who’s affiliated with an SEG. Another option is to join the American Consumer Council or Select Saver’s Club, which don’t require you to pay a fee.
For the online application, have your government-issued ID and Social Security number and the details for your current bank ready. You’ll also be able to select the certificate account and fund your account before submitting the application.
What Is a Credit Union CD?
Credit union CDs pay a guaranteed rate over a fixed period of time and may require a minimum deposit. You’re expected to leave the money in the account until the maturity date, when you might renew your certificate or withdraw the funds. You typically can’t deposit funds throughout the term unless you open an add-on CD.
While early withdrawals are usually possible, they can cost you months of earned interest, which credit unions usually call dividends. However, some credit unions do offer flexible certificates that are ideal for making early withdrawals or additional deposits.
Credit Union CD Rates
CDs usually offer better rates than some other types of bank accounts because your money is held in the account for a set period of time. But since credit unions aren’t for-profit institutions like banks are, they tend to reward their members with better rates. Enjoying these rates requires meeting membership requirements. Plus, rates vary for different CD types, terms and promotions.
Generally, you’ll earn a fixed rate on a certificate. However, your credit union might offer variable accounts that allow for a rate increase later, though these flexible accounts typically have somewhat lower rates. You may also be able to earn a higher rate by having a large minimum balance or by choosing a promotional term.
Credit Union CD Safety
Along with providing guaranteed returns, credit union CDs can be safe investments — as long as your financial institution has insurance from the NCUA. This protects each depositor’s combined account balances for a maximum of $250,000 at each credit union. Your insured savings won’t be affected by credit union failures or market fluctuations.
How To Choose a Credit Union CD
Your financial goals play a major role in which credit union CD you should choose. Here are some important factors to consider:
Account Details
The interest rate and term length are just two of the details you should note when comparing credit union CDs.
- CD types: Consider important account features and your savings goals. You might prefer a no-penalty CD or an add-on CD for flexibility or a bump-up CD if interest rates are expected to rise. If you’re saving for retirement, consider IRA CDs for tax perks.
- CD terms: For an emergency fund or an upcoming purchase, you may want a shorter-term CD that doesn’t restrict your cash for too long. But if you plan to save for years and have accessible cash elsewhere, you might prefer a longer-term CD.
- Interest rates: Check rates from several credit unions and compare them to each other and the national averages. Note how rates vary for different CD types, terms and promotions.
- Minimum deposit and balance requirements: Credit unions often require minimum deposits and minimum balances for CDs. Check if you need a certain balance to earn a higher rate.
- Early withdrawal penalties: Check what a credit union charges for an early withdrawal. If you think you might need to take money out before your CD term ends, avoid credit unions with hefty penalties.
Credit Union Policies
Make sure you’re eligible to join the credit unions you’re considering and that they have deposit insurance.
- Membership eligibility: Check which associations, locations and family relationships might qualify you for membership. You might prefer credit unions that are simply open to everyone, such as PenFed Credit Union.
- Deposit insurance: Only get your credit union CD through a financial institution with insurance coverage from the NCUA.
Pros and Cons of Credit Union CDs
While credit union CDs share many of the pros and cons of bank CDs, there are differences. Consider these pros and cons carefully to decide whether these CDs suit your financial situation.
Pros
Competitive interest rates: Credit unions tend to offer great rates on CDs, especially if you’re saving for the short term.
Guaranteed earnings: Unlike savings accounts, which generally have variable rates, credit union CDs usually have fixed rates and can provide guaranteed returns.
Safe investment choice: Thanks to NCUA insurance coverage, you don’t have to worry about losing your money (up to $250,000) if your credit union fails.
Variety of options: Whether you want standard, bump-up, IRA or CDs, credit unions tend to have several options for your needs.
Membership perks: By opening your CD at a credit union, you can often enjoy lower account fees and discounts from certain businesses.
Cons
Membership requirements: Compared to getting a bank CD, you’ll find your options more limited since you usually must have a specific affiliation or meet some other requirement to join a credit union.
Minimum deposit requirements: Like with banks, you’ll typically need a minimum deposit of at least $500 or $1,000 to open a credit union CD, so account accessibility varies.
Early withdrawal penalties: Like banks, credit unions often take a portion of your CD’s earned interest if you withdraw principal early (unless you choose a no-penalty CD).
Higher rates possible for alternative investments: Although credit union CDs offer competitive rates and are less risky, investing in the stock market or buying bonds can be more profitable.
The Bottom Line: Credit Union CD Rates
Credit union CDs can offer competitive rates, safety and a variety of options. Carefully research rates for certificate accounts, along with early withdrawal penalties and requirements for credit union membership.
FAQ: Top Credit Union CD Rates
Out of our top picks for six-month to one-year standard credit union CDs, American Airlines Credit Union offers the highest APY on its six-month CD. Navy Federal Credit Union ranks second for its one-year special EasyStart CD.
You usually won’t earn 7% interest on deposit accounts such as CDs, money market accounts and high-yield savings accounts from banks and credit unions. Rarely, you may find special checking or savings accounts at credit unions that pay 7%, but typically only on limited balances.
Although you typically can’t get a 6% CD rate right now, you can find CD rates around 5% through some credit unions and online banks, such as BMO Alto, Popular Direct and Sallie Mae Bank. Look for shorter-term options to land these high rates.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
*Rates accurate as of July 25, 2024
**Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
