Courtesy of Veridian Credit Union

Courtesy of Veridian Credit Union

Savers are in luck: An Iowa-based credit union has one of the best short-term CD offers.

Veridian Credit Union’s 25-month certificate of deposit pays 1.8 percent APY. Out of the top nationally available 2-year CD deals with similar deposit requirements, that’s the highest rate.

Top nationally available 24-month CD rates
Institution APY Minimum deposit
Connexus Credit Union 1.7% $5,000
Popular Direct 1.7% $10,000
M.Y. Safra Bank 1.66% $5,000
Northern Bank Direct 1.65% $500
Synchrony Bank 1.65% $2,000

You don’t have to live in the Midwest to take advantage of Veridian’s CD special. The deal is open to anyone who registers for Dwolla, the credit union’s free person-to-person payment system.

Who should consider this CD special

A 2-year CD is a safe bet for savers nervous about rising rates.

When the Federal Reserve raises its key interest rate (which it forecasts will happen twice more in 2017), banks may not be quick to respond. But the long-term trend is for interest rates to climb.

Does that mean deposit rates are likely to be higher in two years? Maybe. But the odds are greater a long-term CD deal that looks good today, may not look so hot in three to five years.

Use our CD calculator to estimate how much interest you’ll earn.

How to join

Signing up for Dwolla is one way to join Veridian Credit Union. Membership is also available to:

  • Immediate family members and household members of current members and anyone who qualifies for membership.
  • Employees and residents within the field of membership (six Nebraska counties and any county in Iowa).
  • Mentally and physically disabled Iowa residents.

You must also deposit at least $5 into a savings account. That will make you a lifetime member of the credit union.

Terms and conditions

The minimum deposit for Veridian’s 25-month CD special is $1,000. You can fund your CD using a credit card, debit card or money from any checking or savings account.

Generally, it’s best to avoid touching the funds in a CD until it matures. Otherwise, you’ll face a penalty.

For CDs with terms longer than 12 months, the early withdrawal penalty is 180 days interest.

About Veridian Credit Union

Veridian Credit Union is headquartered in Waterloo, Iowa. Deposits up to $250,000 are insured by the National Credit Union Administration.

The credit union earned four out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.