Best 1-year credit union CD rates — June 2021

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Yields generally aren’t as high as they were almost a year ago, but it’s still possible to find a competitive interest rate. One way to do that is to shop around and look at the yields tied to the share certificates offered by credit unions.

A share certificate from a credit union is just like a certificate of deposit (CD) from a bank. The difference is that one is from a credit union and one is from a bank. Because of this similarity, we will use “share certificate” and “credit union CD” interchangeably. Share certificates are said to earn dividends, whereas CDs earn interest, but the effect for the saver is the same. By looking at annual percentage yields (APYs), we can compare interest and dividends on an apples-to-apples basis.

The average 1-year CD yield was 0.17 percent APY, according to Bankrate’s weekly survey of institutions on June 2, 2021.

Pros and cons of credit union CDs

Brick-and-mortar banks can be pretty stingy when it comes to paying out interest to customers with savings accounts. In many cases, their CD rates aren’t impressive either.

Credit unions are member-owned institutions. That means they’re always looking out for their customers. It’s not hard to find a credit union offering competitive rates tied to CDs.

The drawback? You may not have access to a credit union share certificate if you cannot qualify for membership. While there are many credit unions that are easy to join, there are still institutions that have restrictions based on where you live or work, or the group you’re affiliated with.

If you are eligible to become a credit union member and apply for a share certificate, it is an important product to keep track of because it may automatically renew (meaning your money is locked up again for another period of time). So if there is a chance you may forget about this account if you have multiple accounts at different banks or you have no other ties to the credit union, it could cause problems if you need this savings to cover an emergency or make an important purchase before it has matured.

Here are some credit unions offering today’s best widely available 1-year CD rates.

Best 1-year credit union CD rates — June 2021

Note: The APYs (Annual Percentage Yields) shown are as of June 4, 2021. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated.

Delta Community Credit Union: 0.65% APY, $1,000 minimum deposit

Delta Community Credit Union began as the Delta Employees Credit Union in 1940. It was started by eight Delta Air Lines employees. Delta Community Credit Union has more than 430,000 members and has 29 branches in metro Atlanta and three branches outside of Georgia.

  • What a 1-year CD pays: 0.65 percent APY
  • Membership restrictions: Anyone living or working in metro Atlanta and employees of more than 150 businesses are welcome at Delta Community Credit Union. Delta Air Lines, Chick-fil-A and UPS are some of the eligible businesses.
  • Minimum deposit: $1,000
  • Early withdrawal penalty: 90 days of dividends.

Navy Federal Credit Union has more than 9 million members and is the world’s largest credit union. It has a global network of 340 branches and is headquartered in Vienna, Virginia.

In addition to CDs, Navy Federal Credit Union also offers checking and savings accounts, loans and credit cards.

  • What a 1-year CD pays: 0.55 percent APY
  • Membership restrictions: Membership at Navy Federal Credit Union is open to all Department of Defense and Coast Guard Active Duty, civilian, contract personnel, veterans and their families.
  • Minimum deposit: $1,000
  • Early withdrawal penalty: The lesser of all dividends for 90 days on the amount that you withdraw or all of the dividends withdrawn since the certificate was issued or renewed.

Golden 1 Credit Union: 0.50% APY, $500 minimum deposit

Golden 1 Credit Union was established in 1933. It has 1 million members and more than 70 branches in California.

  • What a 1-year CD pays: 0.50 percent APY
  • Membership restrictions: You must live or work in California and open a savings account at Golden 1 Credit Union with at least $1.
  • Minimum deposit: $500
  • Early withdrawal penalty: CD terms of one year through 23 months will incur a 180-day early withdrawal penalty. A CD with a term of two years or longer has an early withdrawal penalty of 365 days of dividends.

Alliant Credit Union: 0.50% APY, $1,000 minimum deposit

In 1935, what’s now Alliant Credit Union was founded as the United Airlines Employees’ Credit Union. Alliant currently has more than 500,000 members nationwide.

Alliant offers competitive APYs with low minimum balance requirements for CDs. Alliant also has traditional individual retirement account (IRA) CDs, Roth IRA CDs and SEP IRA CDs.

  • What a 1-year CD pays: 0.50 percent APY
  • Membership restrictions: Current employees or those who are retired from a business that partners with Alliant Credit Union may be eligible to join the credit union. You may also be able to join by belonging to an organization that Alliant Credit Union partners with. You can also qualify to join Alliant Credit Union if you live or are employed in a community near its Chicago headquarters. If those circumstances don’t apply to you, you can make a one-time $5 payment and Alliant Credit Union will donate that money to Foster Care to Success so you can become an Alliant Credit Union member.
  • Minimum deposit: $1,000
  • Early withdrawal penalty: Dividends on the number of days the CD is open, up to 90 days. (So, if you withdraw after 180 days, you will pay a penalty of 90 days of dividends; if you withdraw after only 20 days, your penalty is all 20 days of dividends.)

SchoolsFirst Federal Credit Union: 0.50% APY, $20,000 minimum deposit for this APY

SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. Created by school employees, the credit union has 50 branches. SchoolsFirst FCU has low minimum balances and CD terms from 30 days to five years. The more money you put in your CD, the higher the APY. CDs at this credit union have four balance tiers: $500, $20,000, $50,000 or $100,000.

  • What a 1-year CD pays: 0.50 percent APY
  • Membership restrictions: SchoolsFirst FCU serves the California educational community. Certain school employees, certain retired school employees and immediate family members of existing SchoolsFirst FCU members may be able to join.
  • Minimum deposit: $20,000 for this APY
  • Early withdrawal penalty: 90 days of dividends.

Bethpage Federal Credit Union: 0.45% APY, $50 minimum deposit

Bethpage Federal Credit Union is one of the largest credit unions in the United States, with over 300,000 members. It opened in 1941 for Grumman employees. Anyone who opens a $5 savings account can become a member.

Bethpage offers nine terms of CDs, ranging from three months to five years, and one 39-month Bump-Up CD.

  • What a 1-year CD pays: 0.45 percent APY
  • Membership restrictions: Bethpage FCU membership is open to anyone who opens a savings account with $5.
  • Minimum deposit: $50
  • Early withdrawal penalty: On a one-year CD, 90 days of interest; on longer-term CDs, 180 days of dividends.

VyStar Credit Union: 0.45% APY, $500 minimum deposit

Headquartered in Jacksonville, Florida, VyStar Credit Union (formerly Jax Navy Federal CU) has more than 735,000 members and is one of the largest financial institutions in northeast Florida.

VyStar offers share certificates ranging from three months to five years, with a $500 minimum deposit to open. It also offers an 18-month step-up certificate that lets you deposit more money and “step up” your rate.

  • What a 1-year CD pays: 0.45 percent APY
  • Membership restrictions: VyStar membership is people who live or work in 49 Florida counties and 10 Georgia counties.
  • Minimum deposit: $500
  • Early withdrawal penalty: 180 days of dividends

Pentagon Federal Credit Union: 0.45% APY, $1,000 minimum deposit

Pentagon Federal Credit Union (PenFed) was established in 1935. It has more than 2 million members and has its main office in McLean, Virginia.

PenFed has nine terms of CDs, ranging from six months to seven years.

  • What a 1-year CD pays: 0.45 percent APY
  • Membership restrictions: Everyone is eligible to apply for PenFed membership. All that is needed is to open and maintain a savings account with at least $5 in it. Some products may require military affiliation to receive certain benefits of the product.
  • Minimum deposit: $1,000
  • Early withdrawal penalty: The last 365 days of dividends earned when you make a withdrawal within 365 days from the date the CD was opened.

Read the fine print

Before signing up for any bank account, it’s important to understand the terms and conditions. With share certificates — and CDs across the board — there’s typically a penalty for early withdrawal. By pulling money out of your share certificate (or CD) before it matures, you’ll likely forfeit some of the interest you’ve earned. Consequences for early withdrawals vary from one credit union to the next and sometimes vary within a single credit union for share certificates with different term lengths.

As long as the credit union you’ve chosen is federally insured by the National Credit Union Administration Share Insurance Fund, the money you’ve deposited in your share certificate will be safe. In the event that the credit union shuts down, you’ll still walk away with your savings. Just keep in mind that there’s a $250,000 threshold for single ownership accounts. Larger amounts won’t be automatically insured.

Recap: Best 1-year credit union CD rates — June 2021

Institution APY Minimum deposit for APY
Delta Community Credit Union 0.65% $1,000
Navy Federal Credit Union 0.55% $1,000
Golden 1 Credit Union 0.50% $500
Alliant Credit Union 0.50% $1,000
SchoolsFirst Federal Credit Union 0.50% $20,000
Bethpage Federal Credit Union 0.45% $50
VyStar Credit Union 0.45% $500
Pentagon Federal Credit Union 0.45% $1,000

Learn more about other CD terms:

Written by
Matthew Goldberg
Consumer banking reporter
Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance.
Edited by
Senior wealth editor
Reviewed by
Bankrate Financial Review Board