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CUs Sweep Best CD Rates Nationwide
Thursday, October 30, 2014 6:40 AM recently compiled a state-by-state list of the best certificates of deposit (CD) in the United States, and at the top of each list, credit unions dominated. In a review of six-month, one-year, two-year, and five-year CD rates, credit unions nationwide came in offering higher CD rates than banks.

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, New Hampshire ($2.4 billion in assets), coming in at No. 2 at a 1.35% APY.

Additional findings from the 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.