Credit Union CD Rates

Credit Union CD Rates

Certificate of deposit (CD) is a special type of deposit account and credit union can issue them in the same way as other financial institutions do.

In the market, most of the investors are looking for the best value for their investment and a CD (Certificate of Deposit) is one of the best ways to invest hard earned money. Different types of financial institutions offer different CD rates and the rates also changed depending upon the length of the CD (Certificate of Deposit). There are two ways to invest money in a certificate of deposit - banks or credit union. Banks are more stable financial institutions but due to a number of reasons, credit unions are found to be better too.

Following Are The Reasons Why Credit Unions Are Better

• Credit union offers higher interest rates on the certificates of Deposit’s as compared to the CD's provided by banks. It is one of the biggest reasons why people prefer investing in CD's through a credit union. Credit unions are cooperative financial institutions which means earnings are returned to members in the form of higher savings rates.

• Credit union is also a nonprofit institution and they don’t have any worry about returning profit to their shareholders as like other banks that have to return profits to their shareholders. 

• Credit union offers easily affordable CD products to their members because the minimum amount that they require are sometimes lower than what the banks require. Credit unions also offer CD products that have very short maturity periods and it is also one of the reasons why some people prefer credit union.

• Now, people have an idea that various credit union marketing strategies offers better options with CD products. Credit union also provides the stability that banks offer. It also provides higher interest rates.

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