Dedicated to Deposits: Deals, Data, and Discussion

Best CD Rates Available to All


The Self Help Credit Union continues to have the best CDs in the nation, and unlike many of the credit unions that I mention, SHCU is open to people in any state (see post for more info). Almost everyday, SHCU rates are tweaked. Some days they go up and some days they go down. Over the last few weeks, there seemed to be more down days than up days. However, this week it has changed for the better. Many of today's CD rates are about 0.10% higher than the rates of last Friday. Below is a full list of the CD rates:

3-month 4.45 4.55
6-month 4.65 4.76
12-month 4.85 4.97
24-month 4.89 5.01
36-month 4.92 5.04
48-month 4.96 5.08
60-month 4.99 5.12

The most important detail about these CDs is that SHCU doesn't allow any early withdrawals. However, these CDs do have one nice feature in that you can add to them during the term. This fatwallet thread brought up a good strategy for utilizing this feature. You can get a $500 5-year CD for the case where future interest rates may go down. If rates are lower 4 years from now, you essentially have a 1-year CD at this 5-year rate. You can just make additional deposits into this CD. The rate and term stays the same. For this reason it may make sense to get a few of the long-term CDs. Since you can't make withdrawals and since the long-term rates aren't much higher than the 1-year rates, it doesn't make much sense in going above the minimum required $500 deposit.

SHCU also made a significant increase to its Money Market Account. It's now at 3.86% APY (up from 3.66%). It has an ATM card and limited check writing, and like the CDs, the minimum deposit requirement is only $500.

This credit union is insured by NCUA making it as safe as any credit union. The only drawback of this credit union is a weak online banking system. You can't do ACH transfers from the account. The best choice might be to open a money market account and link it from another bank like USAA where you can initiate ACH transfers. Once the money has been transfered into the money market, you should be able to fund a CD with this money. Once the CD matures, SHCU should be able to transfer the money back to the money market. If you do this approach with a ladder of CDs, you could be getting interest rates near 5% without much reduction of liquidity.

Comment #1 by Nationalcity (anonymous) posted on
They have a 13-18 month CD paying a 4.25% APY with 10k or more
19-42 month at 5%APY with 10k or more and
43-54 months at 5.25%APY
for 10k or more