Best Credit Union CDs

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We survey 90 credit unions every weekday to determine which ones have the best CD rates. We’ve created this list of credit-union-specific CD rates for people who prefer to work with credit unions because they’re customer-owned and often have better rates than banks. The credit unions below are available to customers nationwide, and they’re all federally insured institutions. Your funds are protected through the National Credit Union Administration, up to $250,000 per depositor per institution.

The list below highlights the best credit union CDs by term, with a few months of wiggle room on either side of the term to capture the best rates available. When there’s a tie, we favor credit unions with the lowest minimum deposit requirement and the most forgiving early-withdrawal policies.

Here are the best credit union CD rates available as of May 24, 2022.

Term Credit Union APY Minimum Deposit Early Withdrawal Penalty
3 Months (2–4 months included) Chevron Federal Credit Union and Spectrum Federal Credit Union (tie) 0.70% $500 3 months of interest
6 Months (5–9 months included) NASA Federal Credit Union (9 months) 1.60% $10,000 All interest earned up to 182 days
1 Year (10–14 months included) Connexus Credit Union 2.26% $5,000 3 months of interest
18 Months (15–20 months included) Department of Commerce Federal Credit Union (12–23 months) 2.00% $25,000 180 days of dividends
2 Years (21–29 months included) Connexus Credit Union 2.86% $5,000 6 months of interest
3 Years (30–41 months included) Connexus Credit Union 3.01% $5,000 6 months of interest
4 Years (42–53 months included) Connexus Credit Union 3.11% $5,000 6 months of interest
5 Years (54–66 months included) Connexus Credit Union 3.21% $5,000 6 months of interest
10 Years (114–120 months included) Apple Federal Credit Union 2.50% $500 1,095 days of dividends

Below are the top certificate of deposit rates available from our partners, followed by details about some of the institutions in our rankings.

Chevron Federal Credit Union: Best 3-Month CD (tie)

If the Chevron Federal Credit Union logo looks a little familiar, there’s a good reason why. The credit union was founded in 1935 and has more than 100,000 members.  It primarily serves members employed by the Chevron Corporation (i.e., the gas stations you’re probably familiar with). If that’s not you, and you don’t qualify through other means, a $15 donation to join the Contra Costa County Historical Society also makes you eligible for membership. Additionally, you’ll need to keep $25 in a savings account, which is a tad bit higher than most credit unions.

In addition to Chevron FCU branches in California, members have access to more than 5,000 CO-OP branches and 85,000 fee-free ATMs nationwide. Chevron FCU also offers checking and savings accounts, loans, and other services.

Chevron Federal acquired Spectrum Credit Union in 2012. Spectrum, however, operates independently in areas not served by Chevron, so the two are listed separately, even though their rates and terms typically mirror each other.

Spectrum Federal Credit Union: Best 3-Month CD (tie)

Spectrum Credit Union merged with Chevron Federal in 2012. However, Spectrum operates independently in areas not served by Chevron, so it is listed here separately.

Spectrum was originally founded as Bechtel Employees Federal Credit Union. If you do not qualify for membership through your employer or other means, you can join the Contra Costa County Historical Society (or another nonprofit linked to the credit union) for as little as $15. Additionally, you’ll have to maintain a savings account with a minimum deposit of $25.

Spectrum’s CDs range from 3-month to 5-year terms. Members can also get a full slate of bank accounts, loans, credit cards, and insurance.

NASA Federal Credit Union: Best 6-Month CD

Started in 1949 by members of the scientific community, NASA Federal Credit Union serves over 177,000 members nationwide. Anyone can join the credit union by becoming a member of the National Space Society. You can join via the NASA Federal Credit Union application page, and your first year of membership is complimentary. Members are also required to sign up for a primary savings account with a minimum deposit of $5.

Connexus Credit Union: Best 1-Year, 2-Year, 3-Year, 4-Year, and 5-Year CDs

Connexus Credit Union serves members nationwide through online banking and as a member of the CO-OP shared network. CO-OP and MoneyPass ATMs also are surcharge-free for members. The credit union is based in Wisconsin and has branches there as well as in Minnesota, Ohio, and New Hampshire.

Membership is available to residents of several communities in Minnesota, Wisconsin, and Ohio, and to anyone affiliated with one of multiple organizations, employers, or schools, including the Connexus Association, which anyone can join for $5.

Department of Commerce Federal Credit Union: Best 18-Month CD

The Department of Commerce Federal Credit Union was chartered in 1964 and has two branches in Washington, D.C.—one at the U.S. Department of Commerce and another at the White House. It also has a branch in Silver Springs, Maryland. Those who do not live in the D.C. area can manage their accounts online or via a mobile app available for Android and Apple devices.

DOCFCU membership is available to anyone who lives, works, worships, or attends school in Washington, D.C., is a family member of a current member, or is a current or former employee of the U.S. Department of Commerce or its contractors, the National Oceanic and Atmospheric Administration, the White House Management and Administration Office, or the Executive Office of the President. Those who do not meet these eligibility requirements can gain eligibility by joining the American Consumer Council.

Apple Federal Credit Union: Best 10-Year CD

Apple Federal Credit Union was founded in 1956 and has branches in northern Virginia. But customers nationwide can access accounts and use shared locations (including over 53,000 ATMs) through shared branching. If you’re not already eligible to join the credit union, you can qualify by joining the nonprofit Northern Virginia Athletic Directors, Administrators, and Coaches. NVADACA, which supports student athletes, offers membership at $20 per year. To get started with Apple Federal Credit Union, you’ll need to open a savings account with at least $5.

What Is a Credit Union?

Credit unions are financial institutions that provide banking services like checking accounts, savings accounts, and loans. They are customer-owned not-for-profit organizations, and they tend to have a community focus. To join a credit union, you typically need to share a common bond with other customers. For example, you might all work for the same employer or live in the same area. However, some credit unions, like those listed here, are available to customers nationwide. To qualify, you typically need to join a nonprofit organization, often with a small donation.

How Do Credit Unions Differ From Banks?

Credit unions provide many of the same services as banks. But their not-for-profit structure makes them unique. In theory, credit unions primarily focus on serving customer-owners and keeping rates competitive. Without the need to generate profits for outside investors or pay taxes on earnings, credit unions might have an edge. Still, it’s always worth comparing offerings from both banks and credit unions.

“Membership” is another difference. To join a credit union, you must meet specific eligibility criteria. Banks, on the other hand, make their services available to anybody.

Concerned that a credit union is too small? If your credit union participates in shared branching, you can use branches and ATMs at other credit unions for free. The CO-OP shared branching network has more than 6,000 branches across the U.S.—more than Wells Fargo or Chase.

Pros
  • Customer-owned organization designed to serve them

  • Competitive rates on loans and deposits

  • Community focus

  • Government-backed deposit insurance at federally-insured institutions

Cons
  • Eligibility requirements may pose hurdles for some consumers

  • Small institutions might lack some services

  • Some large credit unions lose the community feel and focus

Why Are Credit Union Rates So Good?

Credit unions often pay higher rates on CDs than banks. Without the need to maximize profits for outside shareholders, credit unions can maximize what they pay out in savings accounts and CDs. Plus, credit unions don’t pay federal income taxes. That provides additional resources for offering high rates to members.

How Do CDs Work?

A CD is an account that pays a specified rate for the length of time that you choose. When you use a CD, you commit to leaving your funds with the bank, and you may have to pay a penalty if you withdraw funds early. Banks and credit unions typically reward you for your commitment by paying higher rates on CDs than they pay on savings accounts.

CDs are “time deposits.” To open a CD, you select a term (six months or three years, for example) and deposit money. Your CD “matures” when the term ends, and you can withdraw the proceeds or reinvest them in another CD. Doing nothing prompts some banks and credit unions to reinvest your funds automatically into another CD with the same term.

How Do Early-Withdrawal Penalties Work?

CDs pay more than savings accounts because you promise to keep your money untouched for an extended period. But if you need to withdraw funds, you can often do so—at a cost. An early withdrawal penalty is a charge you pay to your bank when you take money out before a CD matures.

Penalties are often quoted as a number of days’ worth of interest. For example, a bank or credit union might have the following schedule of charges:

  • For terms shorter than one year, pay 90 days of interest
  • For terms of one year to five years, pay six months of interest
  • For terms greater than five years, pay 12 months of interest

Early-withdrawal penalties typically increase on CDs with longer terms.

What Is a No-Penalty CD?

Some CDs do not have early withdrawal penalties. You can take funds out of a no-penalty CD at any time without paying additional charges. You might have to wait at least seven business days after opening the account, but the money is free and clear after that.

No-penalty CDs offer flexibility, but you may pay a small price to keep your options open. These CDs typically pay lower rates than CDs that feature an early withdrawal penalty (all other things being equal). Still, a no-penalty CD might make sense if you’re setting aside funds for an unexpected need. Likewise, if you think rates might fall, you can use a no-penalty CD instead of a savings account. That strategy allows you to lock in today’s rates (for a while, at least) while keeping your money liquid.

What Is a CD Ladder?

A CD ladder is a strategy that helps you avoid problems that may arise if you put all of your money into one CD. To use a laddering strategy, purchase multiple CDs with different maturity dates. By doing so, you have CDs mature periodically, and you can use those funds for spending needs. What’s more, as rates rise and fall, a ladder prevents you from investing everything into the lowest-yielding CDs.

For example, if you have $20,000 to invest, you might use the strategy below:

  • $5,000 in a 6-month CD
  • $5,000 in a 12-month CD
  • $5,000 in an 18-month CD
  • $5,000 in a 24-month CD

Whenever a CD matures, you put the proceeds into a new 24-month CD. As you cycle through CDs, you have cash available every six months. You can spend that money or reinvest at whatever rates are available.

What Should You Look for in a CD?

Competing CDs can differ in multiple ways. Factors to consider when deciding which option is best for you include:

  • Earnings: The rate you earn from a CD is one of the most important aspects. Credit unions typically quote an annual percentage yield (APY), which helps you compare offerings from different places. APY accounts for compounding, so you don’t need to pay attention to compounding frequency if you use this measure. If you compare interest rates (but not APY), CDs with daily compounding are best, all other things being equal.
  • Safety: Verify that you buy CDs from a credit union that’s federally insured. NCUSIF insurance is backed by the U.S. government, and your funds are protected up to $250,000 per depositor per institution.
  • Flexibility: As you evaluate CDs, review early-withdrawal policies. You may need to get your money before maturity, and it’s nice to know how much you’ll pay to do so. If multiple credit unions offer similar rates, consider using CDs with the most liberal early-withdrawal penalties.
  • Minimum Deposit: Before you commit to a credit union, investigate the minimum purchase requirements for CDs. Depending on how much you have to work with, that may determine where you open an account. CD minimums of $500 are not uncommon, but some institutions require $2,500 or more.

What Are Some Alternatives to CDs?

CDs are excellent for keeping your money safe while maximizing your earnings. If you’re keeping funds in a bank or credit union, a CD probably offers the highest rate. But other vehicles might be a better fit for your needs.

  • Savings accounts also pay interest, but you can cash out if you need funds immediately—without worrying about an early withdrawal penalty.
  • Money market accounts pay rates similar to savings accounts, but they may include tools for spending. For example, you might be able to use a debit card, checks, or online bill pay.

Key Takeaways

As member-owned organizations, credit unions are an excellent place to buy CDs. They often pay more than banks, and even small credit unions might provide ample access to branches and ATMs. When you commit to a term of several months (or more), credit unions tend to pay more on CDs than they pay in savings accounts. But watch out for early withdrawal penalties, and consider using no-penalty CDs or a CD ladder if you want to avoid getting stuck in a CD that causes problems.

Article Sources

The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. National Credit Union Administration. "How Is a Credit Union Different Than a Bank?"

  2. National Credit Union Administration. "Credit Union and Bank Rates."

  3. Credit Union National Association. "Credit Union Not-For-Profit Tax Status." Page 3.

  4. Consumer Financial Protection Bureau. "What Is a Certificate of Deposit (CD)?"

  5. NASA Federal Credit Union. "Certificate Terms & Conditions."

  6. United Federal Credit Union. "Liquid Share Certificate."

  7. FINRA Foundation. "Bank Products." Page 14.

  8. The Federal Reserve Board of Governors. "Regulation DD: Truth in Savings."

  9. National Credit Union Administration. "Share Insurance."

  10. Lake Michigan Credit Union. "Money Market Accounts."