NEW YORK – Credit unions dominate the nation’s highest-yielding certificates of deposit this month, with several institutions offering promotional annual percentage yields of 5% or more – and one paying as much as 9% – even as average CD rates remain below 2%, according to a report that notes some of the rates are part of special promotions and include caveats.
Citing Federal Deposit Insurance Corp. data, MarketWatch reported that the average yield on a 12-month certificate of deposit edged up to 1.68% in August. However, Bankrate data compiled by the publication found that the 10 highest promotional CD rates available nationwide were all offered by credit unions.
Leading the list is Southland Credit Union in California, which is offering a promotional 9.00% APY on a nine-month certificate as part of its 90th anniversary celebration. The offer applies only to the first $1,000 deposited, with a minimum opening deposit of $100, and is available to eligible members in Orange and Los Angeles counties.
Other High-Rate Offers
Other High-Rate offers identified by MarketWatch include:
San Francisco Fire Credit Union: Up to 7.50% APY
“Like many of the top offers this month, this credit union is offering a promotional 7-month certificate at 7.50% as part of its 75th anniversary celebration,” the analysis stated. “Accounts here can be opened with just $250, however eligible depositors are capped at just $3,000 at this high rate. Only those who live, work or attend school in San Francisco, San Mateo or Marin counties in California, as well as active or retired firefighters and members of select organizations, may join.”
Lynchburg Municipal Employees Federal Credit Union: Up to 6.50% APY
For this credit union’s 65th anniversary, eligible members can earn 6.50% APY with a 78-month share certificate, MarketWatch reported. Deposits are limited to $10,000 per member. Membership is restricted to employees of select Lynchburg, Virginia, agencies and their immediate families.
Holy Rosary Credit Union: Up to 6.03% APY
“This special 7-month CD pays the promoted 6.03% APY on balances from $500 to $2,000,” MarketWatch stated. “Membership here is only extended to those who live, work or worship within the Catholic Diocese of Kansas City-St. Joseph, or to members or affiliate organizations.”
Financial Partners Credit Union: Up to 6.00% APY
“This 8-month promotional CD is only available to new members. While the minimum deposit is $1,000, the maximum is capped at $5,000. To join, you must live in Los Angeles, Orange, Riverside, San Diego, San Francisco or Alameda, Calif.”
Pepco Federal Credit Union: Up to 5.12% APY
“It only takes $50 for eligible members to earn 5.12% APY on a 5-month share account,” MarketWatch stated. “The account is limited to $5,000 and available to employees of the Potomac Electric Power Co. in Washington, D.C., Maryland or Virginia, as well as their families.”
California Coast Credit Union: Up to 5.00% APY
According to MarketWatch, the “Take 5 Certificate” comes with a highly competitive 5.00% APY for five months on deposits between $500 and $5,000. It is available to new members in various Southern California counties using “new money” not currently on deposit.
A+ Federal Credit Union: Up to 5.00% APY
“For a longer term, the StartUP Share Certificate pays 5.00% APY for 12 months,” MarketWatch reported. “While the minimum deposit is only $10, the balance is capped at $1,000. Membership is limited to qualifying Texas residents and select school district employees.”
Central Vermont Medical Center Credit Union: Up to 5.00% APY
“New members can access a 5.00% APY 6-month CD with a $2,000 minimum deposit of new money. Only employees of the Central Vermont Medical Center and their families are eligible,” MarketWatch stated.
University of Kentucky Federal Credit Union: Up to 5.00% APY
“Like with all share certificates here, there is also a $1,000 opening balance requirement to access this nine-month account,” according to Marketwatch. “This offer, however, is limited to members living in select northern Kentucky ZIP codes.”
