How to Compare Credit Union Savings Account Interest Rates

Compare and earn more interest

It is important to compare credit union savings account interest rates to earn the most income that you can on your savings. If you are saving for college, a new home or retirement, every penny you can earn in interest will take you closer to your goal. Credit unions typically pay higher interest rates on savings than banks because they are member owned. There may be several types of savings accounts available at your credit union depending on your financial goals. How do you compare credit union savings account interest rates?

Things You'll Need

• List of account requirements and interest rates
• Internet addresses (URLs) or phone numbers of area credit unions
• Spreadsheet software

Instructions

1. Make a list of the types of savings account interest rates that you will be comparing with one another to ensure that they are the same type of accounts. Make a separate column for each credit union. Actual interest rates vary depending on the type of savings account, which may have minimum deposit requirements or limited withdrawals allowed. Accounts that offer higher interest rates may charge penalties for early withdrawals, too many withdrawals or going below a specific account balance.

2. Call local credit unions or check their websites for the current interest rates they are offering on each of their savings products. Be sure to note the interest rate being offered in the column for the specific credit union on your list beside each product.

3. Ask specific questions about the savings account either on the phone or in person before assuming it is the best option for your savings. The highest interest rates offered may not be the best option for your savings if specific policies will cost you penalties. Paying penalties will reduce the actual interest you earn.

4. Write notes about each credit union on your list to help you keep track of any specific balance requirements, number of withdrawals that are allowed each month, or service fees.

5. Compare the information on your list about each type of savings account, interest rates and rules. If you made your list on a computer spreadsheet, print it out and then make an informed decision.

Tips & Warnings

• Before moving your savings account, ask your credit union if it has a product available with similar interest rates to the ones you have found.

• Penalties for early withdrawals may exceed interest earned, so consider future financial needs when locking funds into timed savings programs.

Resources

• Stated Annual Interest Rate
• Compare Local CD and Investment Rates