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Credit Unions (CUs) are largely indistinguishable from banks for the average depositor (or borrower). CUs are structured as not-for-profit financial cooperatives, and generally require maintaining a small balance in a savings account (share account). Deposits are called shares since they represent a share of ownership in the credit union. CUs are required to limit their membership to a specific Field of Membership (FOM). FOMs may include individuals who work for certain companies, who are members of certain associations, whose relatives are CU members, or who live within certain geographic areas. While not FDIC insured, deposits with a CU are insured with basic coverage until December 31, 2013 of up to $250,000 by the National Credit Union Administration (NCUA), a US government agency through the National Credit Union Share Insurance Fund (NCUSIF). The NCUA typically maintains the same deposit coverage insurance limits as provided by the FDIC, and like the FDIC Deposit Insurance Fund, the NCUSIF is backed by the full faith and credit of the United States Government. Refer to this NCUA brochure for more details.
3 Month CD | 6 Month CD | 1 Year CD
2 Year CD | 3 Year CD
| Credit Union | APY** | Minimum Deposit | FOM***/Reviews |
1.51% |
$500 |
FOM / Reviews | |
1.10% |
$500 |
FOM / Reviews | |
0.50% |
$500 |
FOM / Reviews | |
|
0.50% |
$1,000 |
FOM / Reviews | |
|
0.35% |
$40,000 |
FOM / Reviews | |
|
0.27% |
$500 |
FOM / Reviews |
* This chart includes credit unions that have broad field-of-memberships and have certificate of deposit accounts that can be opened and monitored online as well as certificate of deposit accounts that are managed through mail correspondence. It, however, does not include certain regional or local credit unions that ordinarily require a personal appearance to open a certificate of deposit account.
** For a complete definition of Annual Percentage Yield (APY), please see the Financial Terminology section.
*** For a complete definition of Field of Membership (FOM), please see the Financial Terminology section.
Discuss your experience with these banks and your views of certificate of deposit products at this time in the BestCashCow Credit Union articles.
To see how these rates compare with certificates of deposit rates offered by FDIC insured banks, please refer to the Bestcashcow.com CD Page.