Credit Union and Bank Interest Rate Comparison (2024)

Are you looking to deposit money or obtain a loan? Compare the current interest rates offered by credit unions and banks.

On average, credit unions offer higher saving rates and lower loan rates.This could help group your savings grow faster and your loan will cost less. Credit unions also tend to charge lower fees, require lower deposit balances and offer better service.

Remember, before opening any account take the time to read the account disclosures. You will learn about the terms of the account, including any fees.

NCUA provides interest rate comparisons from S&P Global Market Intelligence, a division of S&P Global. S&P Global Market Intelligence tracks interest rates and terms at credit unions and banks across the country.

Credit Union and Bank Interest Rate Comparison (2024)


Do credit unions have better interest rates than banks? ›

Credit unions tend to have lower interest rates for loans and lower fees. Banks often have more branches and ATMs nationwide. Many credit unions have shared branches and surcharge-free ATMs provided through the CO-OP Shared Branch network. Banks have historically had better technology online and for mobile apps.

What is one reason that a credit union is better than a bank? ›

Why Choose a Credit Union? Lower interest rates on loans and credit cards; higher rates of return on CDs and savings accounts. Since credit unions are non-profits and have lower overhead costs than banks, we are able to pass on cost savings to consumers through competitively priced loan and deposit products.

What is the main difference between a credit union and a bank? ›

Banks are typically for-profit entities owned by shareholders who expect to earn dividends. Credit unions, on the other hand, are not-for-profit, member-owned cooperatives that are committed to the financial success of the individuals, families, and communities they serve.

Is a credit union better than a bank for a high yield savings account? ›

Higher savings rates: On average, you'll find better interest rates at credit unions than banks, though some high-yield accounts at banks rank at the top of the industry. Lower loan rates: Similarly, credit unions typically charge lower interest rates on loans than banks.

What is the downside of banking with a credit union? ›

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

What credit union has the highest interest rate? ›

Compare the Best CD Rates
InstitutionRate (APY)Term
Vibrant Credit Union5.50%9 months
NASA Federal Credit Union5.50%9 months
MutualOne Bank5.40%6 months
Apple Federal Credit Union5.40%12 months
17 more rows

Why do banks not like credit unions? ›

First, bankers believe it is unfair that credit unions are exempt from federal taxation while the taxes that banks pay represent a significant fraction of their earnings—33 percent last year. Second, bankers believe that credit unions have been allowed to expand far beyond their original purpose.

Is my money safer in a credit union than a bank? ›

Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.

Who are the top 5 credit unions? ›

Largest Credit Unions in the U.S.
Rank by Asset SizeCredit Union NameTotal Assets
1.Navy Federal Credit Union$168.4 billion
2.State Employees' Credit Union$50.68 billion
3.Pentagon Federal Credit Union$35.36 billion
4.Boeing Employees' Credit Union$29.17 billion
6 more rows
Apr 25, 2024

Are credit unions safer than banks during a recession? ›

bank in a recession, the credit union is likely to fare a little better. Both can be hit hard by tough economic conditions, but credit unions were statistically less likely to fail during the Great Recession. But no matter which you go with, you shouldn't worry about losing money.

What are three big differences between banks and credit unions? ›

But compared to banks, credit unions tend to be smaller, operate regionally and are not-for-profit. In many instances, they offer lower rates on loans, charge fewer fees and offer better interest rates for deposit accounts than traditional banks.

What are the pros and cons of a credit union? ›

The Pros And Cons Of Credit Unions
  • Better interest rates on loans. Credit unions typically offer higher saving rates and lower loan rates compared to traditional banks. ...
  • High-level customer service. ...
  • Lower fees. ...
  • A variety of services. ...
  • Cross-collateralization. ...
  • Fewer branches, ATMs and services. ...
  • The biggest negative.
Oct 4, 2022

Can the government take your money from a credit union? ›

Through right of offset, the government allows banks and credit unions to access the savings of their account holders under certain circ*mstances. This is allowed when the consumer misses a debt payment owed to that same financial institution.

What is the best credit union to bank with? ›

Here are some of the country's top credit unions:
  • Alliant Credit Union. Alliant offers an above-average interest rate for savings. ...
  • Consumers Credit Union. ...
  • Navy Federal Credit Union. ...
  • Connexus Credit Union. ...
  • First Tech Federal Credit Union.

Can you get a high yield savings account at a credit union? ›

To build your savings faster and stronger, the best advice is to “pay yourself first” with an Automatic Savings Plan at One Credit Union. You can set it up to move funds immediately when your direct deposit comes in! You can open/create multiple High Yield accounts and name them for your specific goals.

Who has lowest interest rates banks or credit unions? ›

Credit unions generally offer low interest rates for auto financing, home mortgages and other consumer loans. Credit unions may charge lower fees than banks. Most credit unions offer many types of savings and lending products and services.

Are credit unions safer than banks right now? ›

Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.

What is the credit union interest rate? ›

In a survey of ILCU affiliate credit unions, the average personal loan rate in the Republic of Ireland was found to be 10.59% APR and 12.52% in Northern Ireland. Try our personal loan calculator tool to see how much a loan could cost you. Loans are subject to approval. Terms and conditions apply.

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