Best Credit Union CD Rates Of July 2024 (2024)

Best Credit Union CD Rates Of July 2024

USAlliance Federal Credit Union No-Penalty CD

Best Credit Union CD Rates Of July 2024 (1)

5.0

Best Credit Union CD Rates Of July 2024 (2)

Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

4.80%

Minimum Deposit Requirement

$500

Interest Compounding Frequency

Daily

Best Credit Union CD Rates Of July 2024 (3)

4.80%

$500

Daily

Editor's Take

USAlliance’s 11-Month Special Certificate offers a generous interest rate without the risk of an early withdrawal penalty. It’s a good option for short-term savers looking to lock in a high interest rate without the typical restrictions of a CD.

With this no-penalty certificate, you can withdraw your balance at any time starting seven days after opening. But partial withdrawals aren’t allowed. So if you need to dip into your balance before maturity, you’ll be forced to withdraw the full amount and close your account.

Pros & Cons

  • Competitive APY
  • Interest compounds daily
  • Bank via website, mobile app or branch
  • Can withdraw interest or principal penalty-free before maturity
  • Requires membership
  • Partial early withdrawals are not permitted

Details

You can bank via the USAlliance website, mobile app or at a branch.

This CD allows for penalty-free withdrawal of your principal after the first seven calendar days of opening an account. But partial early withdrawals are not allowed—you either withdraw the entire balance or nothing at all. Though USAlliance won’t charge a penalty if you make an early withdrawal, it will close the account if you take money out before the maturity date. Certificates automatically renew unless scheduled for redemption at maturity.

Because USAlliance is a credit union, you’ll have to qualify to join. If you’re not eligible for membership by association, employer or location, you can qualify by joining one of the credit union’s partner associations for free during the application process.

Digital Federal Credit Union Regular Certificates

Best Credit Union CD Rates Of July 2024 (4)

5.0

Best Credit Union CD Rates Of July 2024 (5)

Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Best Credit Union CD Rates Of July 2024 (6)

3.46% to 4.86%

$500

Daily

Editor's Take

While some credit unions reserve their best rates for promotional certificates only, Digital Federal Credit Union (DCU) has competitive rates across the board.

Its regular certificates have terms ranging from three months to five years and earn 3.46% to 4.86% APY. All you need is a $500 opening deposit.

While your DCU regular certificate is active, you can either leave the interest inside and let it grow, or you can transfer it to an external account to use immediately. The credit union also offers the Digital Federal Credit Union Quickstart Certificates , which have the same interest rates but require only a $100 minimum deposit.

Pros & Cons

  • Competitive CD rate across all terms
  • Can withdraw dividends at any time
  • Relatively low opening deposit
  • Membership open to anyone
  • Some membership options require a one-time fee to a charity
  • Early withdrawal penalties apply
  • Short grace period

Details

There are several ways to qualify for a DCU membership. If you’re not eligible for a DCU membership by community or company, you can join by becoming a member of one of its partner charities, like Reach Out for Schools ($10 membership).

Credit union certificates earn dividends rather than interest. Dividends compound daily and are credited monthly. Early withdrawal penalties are equal to 60 days to 180 days of interest, depending on the term. You have a five-day grace period after maturity to withdraw funds or adjust your CD’s term before it renews.

Digital Federal Credit Union Regular Jump-Up Certificates

Best Credit Union CD Rates Of July 2024 (7)

4.7

Best Credit Union CD Rates Of July 2024 (8)

Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

4.24% to 4.34%

Minimum Deposit Requirement

$500

Interest Compounding Frequency

Daily

Best Credit Union CD Rates Of July 2024 (9)

4.24% to 4.34%

$500

Daily

Editor's Take

With Digital Federal Credit Union (DCU)’s Jump-Up Certificate, you can request a rate increase one time during your term. So if rates are on the rise, you can open this account without worrying about missing out.

DCU’s Jump-Up Regular Certificates have a $500 minimum balance. You can earn 4.24% on a 27-month term or 4.34% on a 15-month term.

For those with more savings, you can lock in a higher interest rate by opening one of the Digital Federal Credit Union Jumbo Jump-Up Certificates. It pays 4.50% for a 27-month CD and 4.60% for a 15-month CD. The minimum opening deposit is $25,000, which is low considering most jumbo CDs require at least $100,000.

Similar to DCU’s other certificate options, you can leave your earned interest inside your account and let it grow, or you can transfer it out and use it before maturity.

Pros & Cons

  • Request a rate increase once during your term
  • Competitive CD rates across all terms
  • Can withdraw interest at any time
  • Relatively low opening deposit
  • Membership open to anyone
  • Some membership options require a one-time fee to a charity
  • Short grace period

Details

There are several ways to qualify for a DCU membership. If you’re not eligible for a DCU membership based on your community or company, you can join by becoming a member of one of the credit union’s partner charities, like Reach Out for Schools ($10 membership).

Credit union certificates earn dividends rather than interest. Dividends compound daily and are credited monthly. Early withdrawal penalties are equal to 90 days of interest for 15- and 27-month Jump-Up Certificates. You have a five-day grace period after maturity to withdraw funds or adjust your CD’s term before it renews

Michigan State University Federal Credit Union Certificate

Best Credit Union CD Rates Of July 2024 (10)

4.7

Best Credit Union CD Rates Of July 2024 (11)

Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

3.25% to 4.50%

Minimum Deposit Requirement

$500

Interest Compounding Frequency

Monthly

Best Credit Union CD Rates Of July 2024 (12)

3.25% to 4.50%

$500

Monthly

Editor's Take

Michigan State University Federal Credit Union has a variety of certificates with terms ranging from three months to five years. Interest rates are competitive across all terms, starting at 3.25% for a three-month certificate and going up to 4.50% for a 12-month Michigan State University Federal Credit Union Jumbo Certificate.

Regular MSU Federal certificates have a $500 minimum deposit. Jumbo certificates require a $100,000 minimum deposit and earn slightly more interest than regular certificates with the same term.

MSU also provides members with a one-year Michigan State University Federal Credit Union Add-On Certificate option, which allows you to open an account with $50 and deposit up to $10,000 throughout the term.

Pros & Cons

  • Add-On Certificates available
  • Competitive rates across all terms
  • Relatively low opening deposit for regular certificates
  • Membership open to anyone
  • Some membership options require a $10 donation to charity
  • Steep early withdrawal penalties compared to other credit unions

Details

Membership at MSU Federal Credit Union is open to the Michigan State University community, residents and workers in select Michigan counties and immediate family members of existing members. If you fall outside these requirements, you can join by making a $10 donation to MSUFCU’s partner charity, the Desk Drawer Fund.

Credit union certificates earn dividends rather than interest. Dividends compound monthly and are credited monthly. Early withdrawal penalties are equal to 90 to 365 days’ interest, depending on the term. You have a seven-day grace period after maturity to withdraw funds or adjust your CD’s term before it renews.

State Department Federal Credit Union Certificate

Best Credit Union CD Rates Of July 2024 (13)

4.7

Best Credit Union CD Rates Of July 2024 (14)

Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

4.19% to 5.20%

Minimum Deposit Requirement

$500

Interest Compounding Frequency

Quarterly

Best Credit Union CD Rates Of July 2024 (15)

4.19% to 5.20%

$500

Quarterly

Editor's Take

State Department Federal Credit Union has several certificate options: Share Certificates with six- to 60-month terms, the State Department Federal Credit Union Bump Up Certificates with 17-, 30- and 45-month terms and the State Department Federal Credit Union Jumbo Certificate with six- to 45-month terms.

Opening deposit amounts start at $500 for Share and Bump-Up Certificates and $100,000 for Jumbo Certificates.

While rates are competitive across all terms, interest compounds quarterly instead of daily, which means your balance won’t grow as fast as it would with other certificates that compound interest more frequently.

Pros & Cons

  • Bump-Up and Jumbo Certificates available
  • Competitive rates across all terms
  • Relatively low opening deposit
  • Membership open to anyone
  • Dividends compound quarterly
  • No three-month CD options
  • No grace period; must select maturity option at opening

Details

There are several ways to qualify for an SDFCU membership. If you’re not a Department of State employee, a family member of a current SDFCU member or part of an affiliate organization, you can join by becoming a member of the American Consumer Council.

Credit union certificates earn dividends rather than interest. Dividends compound quarterly and are credited quarterly or at maturity for terms shorter than 12 months. Early withdrawal penalties are equal to 30 to 360 days’ interest, depending on the term.

SDFCU certificates do not have a grace period. Instead, you choose on your application what you’d like SDFCU to do with your certificate at maturity—transfer it to a regular share savings account, a share checking account or a money management account, or renew it for another term.

Summary: Best Credit Union CD Rates

Bank / Credit UnionCompany - LogoForbes Advisor RatingForbes Advisor RatingAnnual Percentage YieldMinimum Deposit RequirementLearn More CTA textLearn more CTA below textLearn MoreInterest Compounding Frequency
USAlliance Federal Credit Union No-Penalty CDBest Credit Union CD Rates Of July 2024 (16)5.0Best Credit Union CD Rates Of July 2024 (17)4.80%$500Daily
Digital Federal Credit Union Regular CertificatesBest Credit Union CD Rates Of July 2024 (18)5.0Best Credit Union CD Rates Of July 2024 (19)3.46% to 4.86%$500Daily
Digital Federal Credit Union Regular Jump-Up CertificatesBest Credit Union CD Rates Of July 2024 (20)4.7Best Credit Union CD Rates Of July 2024 (21)4.24% to 4.34%$500Daily
Michigan State University Federal Credit Union CertificateBest Credit Union CD Rates Of July 2024 (22)4.7Best Credit Union CD Rates Of July 2024 (23)3.25% to 4.50%$500Monthly
State Department Federal Credit Union CertificateBest Credit Union CD Rates Of July 2024 (24)4.7Best Credit Union CD Rates Of July 2024 (25)4.19% to 5.20%$500Quarterly

Current Credit Union CD Rates

You can find the current best credit union CD rates at the institutions listed above. Forbes Advisor regularly updates rates from credit unions nationwide, so you can compare your options at a glance. Rates can vary by institution, minimum deposit requirements and term length. Currently, the average one-year CD rate is 1.86%, and the average five-year CD rate is 1.43%, according to the Federal Deposit Insurance Corporation (FDIC).

If you find a credit union offering rates above these averages, then it’s generally considered a good CD rate.

What Is a CD at a Credit Union?

A CD, or certificate of deposit, at a credit union is much like a CD at a bank. It allows you to deposit money for a fixed period of time, such as six months or five years, and earn guaranteed interest in return.

Most credit unions call CDs “share certificates” because they represent your share of the credit union’s ownership, but share certificates are identical to CDs. Like banks, credit unions offer different interest rates on certificates depending on the length of time you commit your funds.

Longer terms can offer higher rates, but this isn’t always the case. If financial institutions suspect that the Federal Reserve will lower rates in the near future, they may offer higher rates on shorter terms now and then adjust them to a lower APY once rates start falling.

Credit union CDs pay the same APY for the full term you select. If you withdraw money before the maturity date, early withdrawal penalties may apply. Once your CD matures, you usually have a “grace period” where you can make changes to your CD or withdraw funds before it renews for another term.

How To Find the Highest Credit Union CD Rates

Finding the best credit union CD rates means you’ll have a greater chance of earning the most interest on your money. You can find the best rates by keeping these tips in mind:

  • Look at the annual percentage yield (APY). The APY reflects the true amount you’ll earn on your CD because it accounts for compound interest. Use a CD calculator to estimate the total amount of interest you’ll earn.
  • Check for promotions. Some credit unions run limited-time promotions with attractive interest rates on select CD terms. Be on the lookout for these promotional CD offers.
  • Consider online-only credit unions. Credit unions often offer some of the best CD rates, and online credit unions tend to make membership available to consumers nationwide.
  • Check for bump-up rate options. If interest rates are on the rise, consider a bump-up CD that allows you to increase your rate during the term.
  • Make sure you’re comfortable with the term. Don’t just go for the highest CD rate. Ensure the term length and minimum deposit requirement fit your savings goals.

How To Apply for a Credit Union CD

You’ll follow these basic steps to open a CD account at a credit union:

  1. Choose a credit union. Decide which credit union you want to open the account with based on the rates they offer for different terms.
  2. Pick your term. Decide how long you can comfortably lock up your money. In times of high interest rates, you may find the best credit union CD rates on shorter terms, like one year.
  3. Determine your deposit amount. Credit unions often have minimum deposit requirements that can range from $0 to $5,000 or more. Decide how much you want to deposit in your CD.
  4. Gather documents. You’ll need to provide the credit union with your photo ID, Social Security number and proof of address for verification purposes.
  5. Visit in person or apply online. Most credit unions allow you to apply for a CD online, but others may ask you to call or visit a local branch.
  6. Fund your CD. Deposit money into your new CD account, either by transferring funds, mailing a check or depositing cash at the branch.
  7. Confirm details. The credit union will provide paperwork confirming your CD rate, term, deposit amount and APY. It will also explain what happens when your CD matures.
  8. Start earning interest. Your CD will now earn interest at the fixed rate you selected until the maturity date at the end of its term.

Do Credit Unions Have Better CD Rates?

Credit unions tend to offer competitive CD rates, but they aren’t guaranteed to always be the highest rates out there.

Larger credit unions may have hundreds of thousands of members. As a result, they can afford to offer very competitive rates to attract even more deposits. Smaller credit unions with only a few branches may not be as aggressive with competitive offers. Regional factors can also play a role. Credit unions located in areas with lots of competition or with lower costs may be able to offer better rates.

Also, institutions that emphasize savings products may work heavily to attract deposits with high rates, while those more focused on checking accounts or loans may care less about offering the best credit union CD rates.

It pays to shop around at both banks and credit unions for the best CD rates. Many online banks offer rates that can rival any financial institution—credit unions included—so always take time to compare before you lock your money up.

Find The Best CD Rates Of 2024

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Best Credit Union CD Rates Of July 2024 (2024)
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