MADISON, Wis. (7/24/12)--In an article Saturday, The Wall Street Journal highlighted credit unions for the favorable rates they pay on certificates of deposits in comparison to banks.
An analysis of 8,300 credit unions and banks conducted for The Wall Street Journal shows that CUs often beat out banks for better rates.
Credit unions and small banks on average pay 0.4% to 0.5% percentage points more on three- and five-ear certificates of deposits than big banks, the article said. Typically, credit unions offer even better rates than smaller credit unions.
Roughly, 18% of credit unions beat the best online rates for CDs--with Fort Knox FCU, Radcliff, Ky., offering the best rates at 2.25% on a 59-month certificate.
The University of Iowa CU, Iowa City, Iowa, offers a 1.75% rate on a 22-month certificate, and a 2.5% rate on 44-month certficate, with a 0.2 percentage bonus for deposits of more than $250,000.
American Airlines FCU offers a five-year certficate at 2.27%.
Connexus CU, Wausau, Wis., pays 2% for a five-year certificate to members with active checking accounts.