Credit unions are trumping banks when it comes to average CD rates, according to a new GoBankingRates.com study.
Rates on CDs of $10,000 are 44% higher at credit unions than at banks, said the Los Angeles-based personal banking website.
The study found that the top CD rates were offered by the $400 million, 42,000-member America’s Credit Union at Joint Base Lewis-McChord, Wash., and the $147 million, 2,900-member Montauk Credit Union in New York City.
“The fact is credit unions destroy banks with higher rates and lower deposit requirements,” said Casey Bond, managing editor of GoBankingRates.com. "There are definitely better deals on the local level in general, but right now, even community banks can't keep up with the savings credit unions are providing members."
The study, which was conducted following the Federal Reserve’s recent announcement that it will not begin tapering its quantitative easing program, reviewed more than 11,000 CD accounts and omitted rates from online-only banks, Bond said.
The study was compiled using the GoBankingRates.com database, which is powered by Informa Research Services Inc. and aggregates rates from more than 4,000 financial institutions, the company said.