Best Credit Union CDs for March 2024

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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.

Scroll down for the top credit union CD rates available as of Mar. 4, 2024.

Best Credit Union CDs for March 2024

Best 3-Month CD: Dow Credit Union
Best 6-Month CD: Andrews Federal Credit Union
Best 1-Year CD: Financial Resources Federal Credit Union
Best 18-Month CD: Fortera Credit Union
Best 2-Year CD: Pelican State Credit Union
Best 3-Year CD: EFCU Financial
Best 4-Year and 5-Year CDs: Credit Human
Best 10-Year CD: Apple Federal Credit Union

Term	Credit Union	APY	Minimum Deposit	Early Withdrawal Penalty
3 Months (2–4 months included)	Dow Credit Union	5.30%	$500	3 months of interest
6 Months (5–9 months included)	Andrews Federal Credit Union	5.75%	$1,000	3 months of interest
1 Year (10–14 months included)	Financial Resources Federal Credit Union (13 months)	5.43%	$500	180 days of interest
18 Months (15–20 months included)	Fortera Credit Union	5.35%	$1,000	6 months of interest
2 Years (21–29 months included)	Pelican State Credit Union	5.27%	$500	9 months of interest
3 Years (30–41 months included)	EFCU (30 months)	5.00%	$500	6 months of interest
4 Years (42–53 months included)	Credit Human	4.60%	$500	Greater of $50 or 365 days interest
5 Years (54–66 months included)	Credit Human	4.60%	$500	Greater of $50 or 365 days interest
10 Years (114–120 months included)	Apple Federal Credit Union	4.00%	$500	All dividends earned (1,095 days maximum)

Best 3-Month CD : Dow Credit Union

Based in Midland, Michigan, Dow Credit Union was founded in 1937 and has more than 77,541 members and $2.12 billion in assets. Membership is available to employees of Dow Chemical, Dow Corning, and their affiliates, as well as to members of the Midland Country Club and Great Lakes Loons Founders Club. Additionally, employees of more than 70 other businesses and organizations are eligible.

In addition to CDs, the credit union provides options for checking, savings, and multiple lending options.

Best 6-Month CD : Andrews Federal Credit Union

Andrews Federal Credit Union started in 1948 with just eight members, and now you can join with a complimentary membership to the American Consumer Council (just use promo code “Andrews”) and $5 in a credit union savings account. Members have access to a wide variety of accounts, credit cards, and loans, and Andrews FCU also provides free FICO credit scores to customers.

Best 1-Year CD : Financial Resources Federal Credit Union

Financial Resources Federal Credit Union was chartered in 1950 to serve employees of Ethicon Suture Laboratories, a division of Johnson & Johnson, in New Brunswick, New Jersey. Previously known as Ethicon Employees Federal Credit Union, it changed its name in 2000.

Membership is available nationwide to anyone who joins the American Consumer Council, which costs a minimum of $8. A lifetime ACC membership costs $15.

Best 18-Month CD : Fortera Credit Union

Chartered in 1954, Fortera Credit Union is headquartered in Clarksville, Tennessee, with numerous branches between Nashville, Tennessee, and Hopkinsville, Kentucky. Membership is available to anyone nationwide. Accounts can be opened and managed online or through an app for Android and Apple devices. Fortera also is part of the CO-OP network of shared branches and ATMs.

Best 2-Year CD : Pelican State Credit Union

Pelican State Credit Union was first chartered in Baton Rouge, Louisiana, in 1956 as the Department of Hospitals Credit Union. It took its current name in 1988. Membership is available to anyone nationwide who joins ARC Baton Rouge by paying its $5 membership fee. The organization dates back to 1954 and serves children and adults with intellectual and developmental disabilities.

In addition to CDs, the credit union offers a full slate of banking options for individuals and businesses, including checking and savings accounts and several types of loans. Pelican has numerous branches throughout Louisiana and is a member of the Dolphin ATM network and the CO-OP shared branch network. Members also can manage their accounts online and through an app for Android and Apple devices.

Best 3-Year CD : EFCU Financial

EFCU Financial was established in Baton Rouge, Louisiana, in the 1930s as the 13th federal credit union in the U.S. It began with 178 members and $941.70. After several name and affiliation changes since its beginnings, it took its current name in 2015.

The credit union has eight branches in the Baton Rouge area, but membership is available nationwide with online and mobile banking and access to shared branches through the CO-OP Shared Branch Network and ATMs through the Allpoint network.

Best 4-Year and 5-Year CDs : Credit Human

Credit Human was formed in San Antonio, Texas, in 1935 to serve members of the National Federation of Federal Employees Local #28 union. It took the name Credit Human in 2016. Membership is available nationwide to anyone who joins the American Consumer Council, and Credit Human agrees to pay the fee to join the ACC.

The credit union has several branches throughout Texas, but members nationwide can access their accounts through online banking, a mobile app, or through CO-OP's shared branching network. Credit Human is not part of a fee-free ATM network.

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Best 10-Year CD : Apple Federal Credit Union

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.

Frequently Asked Questions

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.

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