Credit Union CD Rates

Credit Unions (CUs) are largely indistinguishable from banks for the average depositor (or borrower). CUs are structured as not-for-profit financial cooperatives, and generally require maintaining a small balance in a savings account (share account). Deposits are called shares since they represent a share of ownership in the credit union. CUs are required to limit their membership to a specific Field of Membership (FOM). FOMs may include individuals who work for certain companies, who are members of certain associations, whose relatives are CU members, or who live within certain geographic areas. While not FDIC insured, deposits with a CU are insured with basic coverage of up to $250,000 by the National Credit Union Administration (NCUA), a US government agency through the National Credit Union Share Insurance Fund (NCUSIF). The NCUA typically maintains the same deposit coverage insurance limits as provided by the FDIC, and like the FDIC Deposit Insurance Fund, the NCUSIF is backed by the full faith and credit of the United States Government.