Credit unions are not-for-profit financial institutions that are owned by their members. This structure allows them to return profits in the form of lower borrowing rates on loans and higher savings rates for depositors. Credit unions also often offer a wider range of banking services than banks, including high interest savings accounts and checking accounts. However, some customers may find that a bank offers the best rates on savings and money market accounts.
The main difference between banks and credit unions is that a bank’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC). In contrast, credit unions’ accounts are insured by the National Credit Union Administration (NCUA). As long as you stay within the NCUA limits, your credit union account is no less secure than one held at a FDIC-insured bank.
In addition to offering a high interest rate on savings, a credit union can also offer other benefits, such as no fees for maintaining a certain balance and low or no overdraft charges. Credit unions can also make it easier to save for specific purposes, such as holiday expenses or college tuition, by offering programs like Christmas clubs and education savings accounts.
A Credit Union high interest savings account Hillsboro is an excellent way to build your emergency fund and help you avoid using your checking or debit card accounts when an unexpected expense arises. If you’re looking for the best credit union savings rate, you should compare top APYs at both online banks and traditional banks to ensure you’re getting the most competitive offer.
Before selecting a credit union for your high-interest savings account, it’s important to understand membership qualifications. While many credit unions allow anyone to join, some require that you live or work in a particular area, are employed in a specific profession or have military ties. Some credit unions also have minimum balance requirements and monthly maintenance fees, but others don’t.
When choosing a credit union, you should look for an APY that is competitive with the top savings and money market rates offered by online banks and local banks. Additionally, you should consider whether a credit union has branches and ATMs near you, and its digital tools if you’re interested in mobile or online banking.
Finally, if you’re concerned about the safety of your savings account, be sure to check that the credit union is federally insured. You can do this by visiting its BestCashCow page, where the institution’s NCUA insurance coverage is detailed on the overview tab.
In addition to the high APY, Navy Federal has other ways for current and former military personnel to save, including a military retirement plan, home loan program, credit card options and other perks. Its savings accounts include a basic account, as well as specialty options for those buying a home, paying for college or managing an estate. Its checking accounts offer free checks and a debit card, along with rewards and other perks for active military personnel.